Cyprus surprises with unchanged repo rate

The Central Bank of Cyprus has raised the interest rate on its marginal lending facility and on the overnight deposit facility by 25 basis points. However, the rate on the central bank's main refinancing operations (repo rate) remains unchanged at 4.5%.

The decision to leave the repo rate unchanged, follows the 25 basis point rate increase by the European Central Bank. Cyprus hopes to join the euro early next year, and its exchange and interest rates track the euro.

Most analysts therefore expe

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