Mr. Constantinos Herodotou gave also a TV interview to the Bloomberg News Agency
The Governor of the Central Bank of Cyprus, Constantinos Herodotou, participated in the Bloomberg Global Regulatory Forum 2022 which was held in London on 6 December 2022. In particular, the Governor was a speaker in the panel discussion “Macro lookout: fighting inflation, avoiding a hard landing and the recovery agenda”, along with Alfred Kammer, Director of the European Department of the International Monetary Fund, Johan Van Overtveldt, MEP - Chair of the European Parliament's Committee on Budgets and former Finance Minister of Belgium and Philip Hildebrand, Vice Chairman of BlackRock.
He referred to the ECB’s objective and actions to restore and stabilize inflation at 2% in the medium-term and maintaining financial stability.
The Governor of the CBC also expressed the opinion that based on current data if a recession does occur it is expected to be mild and short-lived (‘soft landing’) on account of three factors. First, and despite the war-induced energy crisis dragging down euro area economic activity, the euro area labour market remains relatively resilient. Second, in a context of supporting households and businesses against high energy bills, fiscal policy needs to be targeted, so as not to fuel inflationary pressures and so as to minimise the need for aggressive monetary policy action. Third, whilst a small uptick in long-term inflation expectations has been observed thus far, they still remain relatively well anchored, thus retaining the credibility of monetary policy to achieve its goal in the medium-term.
The Forum participants comprised representatives from international and supervisory organisations, as well as senior market executives. The participants analysed the current economic and market challenges as well as the need for establishing a robust and resilient regulatory framework that allows the financial system to flourish.
Mr. Herodotou made similar remarks in the TV interview he gave on the same day on the Bloomberg News Agency.
For the Governor’s interview, please click here.