CISCO forecasts interest rate cut
The Central Bank of Cyprus might lax its monetary policy reports CISCO in its review of international and domestic economic conditions in the first half of 2002. The subsidiary company of the Bank of Cyprus Group mentions in a report that accompanies the financial results of Cytrustees, that the international and domestic macroeconomic conditions create the possibility of change the monetary policy of the Central Bank, revising its forecasts downward.
In reference to the interest policy of the Central Bank, CISCO underlines that ‘even though the position of the monetary authorities the last months kept the interest rates constant, there is a high possibility of a further decrease of the interest rates of the second semester of 2002.’
CISCO’s forecast is line with equivalent forecasts of various international organizations, which ‘see’ an interest cut in the US and Europe before the end of the year, in an attempt to boost the international economy. As SW mentioned on Monday, international economists expressed grave concerns lately after a flow of negative news from the US and European markets caused the downward revision of their growth forecasts. The data that the US Commerce Department published last Wednesday showed that the GDP of the country increased only 1.1% the second quarter of 2002 in comparison with 5% of the first quarter.
Responding to a question by SW on the changing international conditions, the governor of the Central Bank of Cyprus Christodoulos Christodoulou stated that the forecasts for global economic recovery, upon which the Bank based its monetary policy decisions in the past two months, do not seem to be confirmed.
The Central Bank of Cyprus might lax its monetary policy reports CISCO in its review of international and domestic economic conditions in the first half of 2002. The subsidiary company of the Bank of Cyprus Group mentions in a report that accompanies the financial results of Cytrustees, that the international and domestic macroeconomic conditions create the possibility of change the monetary policy of the Central Bank, revising its forecasts downward.
In reference to the interest policy of the Central Bank, CISCO underlines that ‘even though the position of the monetary authorities the last months kept the interest rates constant, there is a high possibility of a further decrease of the interest rates of the second semester of 2002.’
CISCO’s forecast is line with equivalent forecasts of various international organizations, which ‘see’ an interest cut in the US and Europe before the end of the year, in an attempt to boost the international economy. As SW mentioned on Monday, international economists expressed grave concerns lately after a flow of negative news from the US and European markets caused the downward revision of their growth forecasts. The data that the US Commerce Department published last Wednesday showed that the GDP of the country increased only 1.1% the second quarter of 2002 in comparison with 5% of the first quarter.
Responding to a question by SW on the changing international conditions, the governor of the Central Bank of Cyprus Christodoulos Christodoulou stated that the forecasts for global economic recovery, upon which the Bank based its monetary policy decisions in the past two months, do not seem to be confirmed.
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