CBC Governor Patsalides Says ECB Interest Rates are Where They Should Be

The Governor of the Central Bank of Cyprus (CBC), Christodoulos Patsalides, recently shared his views on the European Central Bank's (ECB) interest rates. According to him, they are where they should be.

Patsalides stated that the current monetary policy of the ECB is neutral to restrictive, and emphasized the importance of acting pre-emptively, especially given the ongoing energy crisis.

He explained that there was no evidence to support a rate hike, as second-round effects are not evident, expectations are anchored, and inflation is in line with its expected path. However, he noted that inflation risks are on the upside due to the current situation with energy prices.