Cyprus Mail
Business Cyprus

ECB’s QE may have a positive effect on Cyprus, economists say

By Stelios Orphanides

The European Central Bank’s expanded asset purchasing programme announced today by its chairman Mario Draghi may help fight deflation and invigorate growth, at least to some extent, economists said.

Alexander Michaelides, who heads the finance department at the Imperial College in London, said the ECB’s 1.1 trillion euros asset purchase programme, also known as quantitative easing, will help the euro area avoid deflation while it may at least indirectly help the Cypriot economy via a weak euro.

The euro “should not have been so strong” given the euro area’s growth prospects, Michalides said adding that a weaker euro could help the economies of countries like Cyprus exposed to third-country services income, such as tourism from the United Kingdom.

Related Posts

Police to launch campaign against drink driving

Katy Turner

Yellow weather warning issued for strong storms

Katy Turner

Air mobility market could be worth $17 billion by 2025

Reuters News Service

Sainsbury’s postpones Christmas parties due to Omicron emergence

Reuters News Service

Double murder investigation launched as bodies of missing Russian women found

Katy Turner

UK’s Sunak plans to cut income tax or slash VAT before next election

Reuters News Service