The Central Bank of Cyprus (CBC) has emphasized the importance of social sensitivity in pricing and overall business practices, while reassuring that the financial sector remains stable and prepared to handle any unforeseen challenges. This call came as part of its 2023 Financial Stability Report, released on Tuesday.
The report highlighted the need for financial institutions to safeguard against various risks while operating responsibly, particularly in their pricing strategies.
Despite the challenges of 2023—including two regional conflicts, sanctions, and adverse developments in the US and Swiss banking sectors—the Cypriot economy demonstrated resilience, according to the CBC.
The report noted that while economic growth in Cyprus slowed compared to 2022, the economy still grew by 2.5 percent in 2023, following the previous year’s 5.1 percent growth rate.
Inflation also decreased significantly, averaging 3.9 percent in 2023 compared to the much higher 8.1 percent in 2022. The CBC attributed this drop primarily to the European Central Bank’s (ECB) restrictive monetary policies and the substantial hikes in key interest rates throughout the year.
Source: Cyprus Mail