Cypriot economists warn of rate risks as Eurobank unveils €1bn technology plan
Cypriot economists cited Middle East risks to inflation, while Eurobank announced a €1 billion technology programme and Keve sought formal dialogue on competitiveness.
Nicosia, Cyprus. Cypriot economists have warned that further escalation of the war in the Middle East could lead the European Central Bank to raise interest rates again, as oil prices add to inflationary pressures. Eurobank has announced a €1 billion technology investment programme, while Keve has called for regular government dialogue on competitiveness.
Inflation and interest rates
Economists speaking to the Cyprus News Agency on Friday said the ECB’s expectation that inflation will return to its 2 per cent target by the end of 2027 indicated that price pressures could persist for a prolonged period.
University of Cyprus economist Sofronis Clerides said the ECB’s latest interest rate increase had been expected because of inflation trends in recent months.
“If the war situation continues to worsen, there is likely to be greater pressure on oil prices and consequently greater inflationary pressures and further interest rate increases in the coming months,” Clerides said.
Eurobank technology programme
Eurobank said on Friday it will invest about €1 billion between 2025 and 2028 in Banking Forward, which it described as the largest technology investment programme in the group’s history.
The initiative is focused on technology, data and artificial intelligence, with the bank seeking to expand digital services and redesign customer interaction while combining digital banking with human contact.
According to Eurobank, the programme is intended to create a “phygital” model that combines the speed of digital channels with face-to-face interaction and redesigns customer journeys for individuals and businesses.
“The Banking Forward programme is the largest technology investment programme in the history of the Group,” Eurobank said.
The bank said its technology strategy is built around three areas: Cognitive, Conversational and Commercial.
Call for competitiveness dialogue
The Cyprus Chamber of Commerce and Industry, known as Keve, has called for a formal and regular dialogue with the government on competitiveness and the wider economy.
Keve argued that Cyprus needs to respond quickly when companies consider leaving and make better use of opportunities to attract foreign firms.
This news item was generated automatically by Cyprus Inform from publicly available materials. Report an error →