In a message addressing the current economic climate, Central Bank of Cyprus (CBC) governor Christodoulos Patsalides on Monday noted that the country is navigating challenges from a position of strength.

He highlighted Cyprus’s sound economic fundamentals, solid fiscal base, and resilient banking sector as key pillars of stability.

Governor Patsalides emphasised that the banking system remains well-capitalised and highly liquid, which he believes strengthens its capacity to absorb potential external shocks.

Regarding the wider eurozone, he indicated that the sharp rise in energy prices is being closely monitored and assessed.

He also communicated that the European Central Bank’s Governing Council continues to determine its monetary policy on a meeting-by-meeting basis.

This approach, guided by the latest data and forecasts, remains focused on the objective of maintaining inflation at 2 per cent over the medium term.