04/04/2003 14:01
The Central Bank of Cyprus has proceeded to an interest rate cut of 0.5% in an attempt to support the recovery of the island’s economy due to the negative impacts from the ongoing war in Iraq.
The Central Bank has also expressed its concerns over the increase of inflation (+4.8% for the first quarter of 2003), which is attributable to temporary and conjecture factors, while core inflation is fluctuating to levels below 3%.
Following the meeting of the Monetary Committee, CB Governor, Christodoulos Christodoulou said that there is a need to improve the island’s fiscals and increase fiscal discipline, stressing that the Monetary Committee believes that despite its small size, the Cyprus economy has strong foundations and remarkable potentialities. The CB Governor added that there is a need to reduce expenditure and increase state revenues.
The Central Bank has also expressed its concerns over the increase of inflation (+4.8% for the first quarter of 2003), which is attributable to temporary and conjecture factors, while core inflation is fluctuating to levels below 3%.
Following the meeting of the Monetary Committee, CB Governor, Christodoulos Christodoulou said that there is a need to improve the island’s fiscals and increase fiscal discipline, stressing that the Monetary Committee believes that despite its small size, the Cyprus economy has strong foundations and remarkable potentialities. The CB Governor added that there is a need to reduce expenditure and increase state revenues.
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