Nicosia: Broader effects from the energy shock remain contained, the Government of the Central Bank of Cyprus, Christodoulos Patsalides said on Friday, commenting on ECB's monetary decision to keep key interest rates unchanged on Thursday.
According to Cyprus News Agency, Patsalides noted in a written statement that the economic outlook continues to be shaped by heightened geopolitical uncertainty. "Risks to inflation continue to be tilted to the upside, whereas risks to growth remain on the downside," he noted, adding that elevated energy prices are increasing production costs.
He further elaborated on the situation, stating that "the longer the conflict in the Middle East endures, the greater the risk that these pressures broaden and become more persistent." His remarks highlight the delicate balance facing economic policymakers amid ongoing global tensions.