Dr. Joachim Nagel, President of the Bundesbank, concludes visit to Cyprus

Thursday, 30 November 2023

The President of the German Bundesbank, Dr. Joachim Nagel, concluded a significant two-day working visit to Cyprus, following an invitation by Constantinos Herodotou, the Governor of the Central Bank of Cyprus.

During their meetings, discussions focusing on current economic trends and the challenges of inflation. Another key highlight of Dr. Nagel's visit was the emphasis on strengthening ties and fostering deeper cooperation between the Bundesbank and the Central Bank of Cyprus.

Moreover, Dr. Nagel's engagement extended beyond dialogues with central banking officials. He also had a productive meeting with Nikos Christodoulides, the President of the Republic of Cyprus. Their conversation delved into broader aspects of the European economy, examining inflation trends and addressing the various challenges currently facing the real economy.

The President of the Bundesbank was the keynote speaker at the conference organised by the Central Bank of Cyprus entitled "Developments in the European economy and the effectiveness of monetary policy".

At his speech, Dr. Nagel, said: “The main effects of the Eurosystem’s policy tightening on inflation are yet to unfold. They are still needed – as underlying price pressures are still strong. Hence, we must stay on course. It is my conviction that we must not loosen policy until we are certain of returning to price stability on a lasting basis”.

Governor Constantinos Herodotou, said: “The ECB's recent monetary policy actions stand as testament to our commitment to price stability. The path we have chosen has been both challenging and rewarding. As we look to the future, we need to remain dedicated to adapting our policies to meet the ever-changing economic environment, always with the aim of fostering price stability for a prosperous euro area”.

Governor Constantinos Herodotou thanked Dr. Joachim Nagel for his visit to Cyprus, noting that he is a personality of the global financial scene with deep knowledge and experience and noted that the Central Bank of Cyprus places high on its priorities the continuous strengthening of its relations with supervisory authorities of other countries.