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ECB Should Not Rush to Raise Interest Rates, Says Cyprus Central Bank Governor

Published March 27, 2026, 14:20
ECB Should Not Rush to Raise Interest Rates, Says Cyprus Central Bank Governor

The Governor of the Central Bank of Cyprus, Christodoulos Patsalides, told Reuters that the European Central Bank (ECB) should not rush to raise interest rates in response to rising energy costs. He stressed that there is no evidence that inflation is becoming entrenched and that the ECB needs more information before making such a decision. Markets are expecting three interest rate hikes from the ECB this year, but expectations remain volatile due to the ongoing energy crisis. The ECB is closely monitoring the situation and, according to the baseline scenario, inflation is expected to return to its 2% target within a year. Mr. Patsalides emphasized the importance of gathering more information before making decisions.