Cyprus appoints new Central Bank Governor

Career banker Christodoulos Patsalides was appointed the Governor of the Central Bank of Cyprus on Monday by President Nikos Christodoulides. His five-year term will officially commence today.

Patsalides will also represent Cyprus on the rate-setting Governing Council of the European Central Bank (ECB). Patsalides has been an economic adviser to Cypriot President Christodoulides for the past year, after overseeing his economic policy team. He also began his career at the Central Bank of Cyprus.

The Central Bank of Cyprus guided the country’s economy following its adoption of the Euro in 2008 and through the Great Recession, which significantly impacted the Cypriot economy. Just like most other European countries, the Bank is now seeking a balanced response to the inflation crisis. The inflation rate in Cyprus is just over 2%, slightly below the rest of the Eurozone. Its unemployment rate of 6.4% is also in line with the Eurozone. Patsalides may thus find it easier to advocate for Cyprus’ economic interests at the ECB, however, his main objective will likely remain focused on reducing inflation without impacting the job market.