The monetary policy of the Euro area should be appropriately responsive, taking into consideration the progression of inflation rates, Finance Minister Makis Keravnos expressed during discussions with Pablo Hernandez de Cos, a Spanish Central Banker and a member of the ECB Governing Council.
De Cos, who arrived in Cyprus following an invitation from Constantinos Herodotou, the Governor of the Central Bank and a fellow member of the ECB Council, engaged in discussions with Keravnos on Tuesday, with Herodotou also present.
A press release from the Finance Ministry revealed that the meeting delved into the current situation and the challenges that the global economy is facing, including those within the EU, as well as topics surrounding the EU’s green transition and energy strategies.
De Cos commended the economic progress of Cyprus, particularly emphasising the strength of the Cypriot banking sector. He acknowledged that, although inflation within the EU is generally on a decline, there remain risks that could affect future economic conditions.
Keravnos offered a comprehensive overview of the Cypriot economy and detailed the principal reforms the government intends to implement. He reiterated the importance of the Euro area’s monetary policy being timely and reactive to inflationary trends.
Furthermore, the Finance Minister highlighted the efforts made by the President of the Republic towards resolving the Cyprus issue, underscoring the necessity for the EU to undertake more decisive initiatives. He argued that a resolution could significantly influence economic growth, to the advantage of all Cypriots.