Cyprus a familiar economic space for Greece

In an interview conducted by Kathimerini Cyprus' Panayiotis Rougalas, Bank of Greece Governor Yannis Stournaras shed light on various aspects of the Cypriot monetary policy and economic landscape.

Stournaras emphasized the effectiveness of recent interest rate hikes by the European Central Bank in curbing inflation without significant repercussions on the real economy and financial stability. The unprecedented speed and intensity of these hikes, initiated since July 2022, led to visible impacts on corporate and household lending rates, resulting in reduced loan demand and slowed credit expansion. Despite the slowing of economic activity, the BoG governor noted that Greece and Cyprus have experienced higher GDP growth rates compared to many other eurozone countries.

Addressing the possibility of lowering interest rates, Stournaras indicated the need for confidence in...