The Euro area monetary policy should respond in due time taking into account the course of inflation, Finance Minister Makis Keravnos has told Spanish Central Banker and member of the ECB Governing Council Pablo Hernandez de Cos.

De Cos, who is visiting Cyprus at the invitation of Constantinos Herodotou, Governor of the Central Bank of Cyprus and fellow ECB Council member, met on Tuesday with Keravnos accompanied by Herodotou.

According to a press release issued by the Finance Ministry, the meeting covered the state of play and challenges facing the global economy, including the EU, the EU’s green transition and energy policies.

De Cos praised Cyprus' economic performance, highlighting the robustness of the Cypriot banking system, while he noted that inflation in the EU in general is on a downward trajectory but there are risks to the outlook.

On his part, Keravnos made a broader presentation of the Cypriot economy and the main reforms planned by the government. He also stressed that the Euro area monetary policy should respond in due time taking into account the developments in the field of inflation.

The Finance Minister also referred to the effort of the President of the Republic over the settlement of the Cyprus problem, stressing the need for more firm initiatives on behalf of the EU as a solution would yield deciding impact on economic growth to the benefit of all Cypriots.

Cyprus has been divided since 1974 when Turkey invaded and occupied its northern third.