Cyprus central bank chief warns lasting energy shock fuels inflation as ECB holds rates

Nicosia, Cyprus. Central Bank of Cyprus governor Christodoulos Patsalides has warned that a lasting energy shock is adding to inflationary pressure and heightening risks to the economic outlook. His comments came as the European Central Bank (ECB) left its interest rates unchanged and price growth in Cyprus stayed elevated.

ECB decision and the governor’s assessment

The ECB’s Governing Council kept all three key rates steady after its monetary policy meeting on Thursday, October 29. The deposit facility rate remains at 2.50 per cent, the main refinancing rate at 2.65 per cent and the marginal lending facility rate at 2.90 per cent.

Related: Cyprus central bank chief warns energy shock is fuelling inflation as ECB holds rates

RelatedCyprus central bank chief warns energy shock is fuelling inflation as ECB holds rates

In a statement issued after the decision, Patsalides said the euro area was facing a longer period of high inflation. He added that Cyprus was coping with the impact of rising prices thanks to its economic resilience, sound public finances and strong banking sector.

He described the defining features of the present situation as “The prolongation of the energy shock, the deterioration in the inflation outlook and the ECB’s commitment”.

Eurobank’s nine-month results

Eurobank reported adjusted net profits of €1.21 billion during the opening nine months of 2026, an increase of 14.3 per cent year-on-year. Almost half of the group’s earnings came from operations outside Greece, even though profits from Cyprus declined.

The Greek banking group’s reported net profit grew by 12.4 per cent to €1.16bn. Earnings per share came to €0.31, and the return on tangible book value was 16.9 per cent.

Operations outside Greece produced adjusted net profits of €555 million, or 45.9 per cent of the group total. Cyprus contributed €356 million and Bulgaria €182 million. Adjusted net profit in Cyprus was down 3.9 per cent year-on-year, while the Bulgarian business posted growth of 9.2 per cent.

Eurobank chief executive officer Fokion Karavias said the results were delivered against an international backdrop of energy and inflationary pressures, together with mounting concern over government deficits and debt. He stated: “As Europe faces a severe energy and inflationary crisis with far-reaching political and social consequences, markets have brought concerns over fiscal deficits and rising public debt into focus.”