ECB Keeps Rates Unchanged As Inflation Reaches 3%

The European Central Bank (ECB) maintained its current interest rate on Thursday, yet signalled growing unease over surging inflation, intensifying market expectations of subsequent rate hikes later this year. With inflation rising to 3%, well above the targeted 2%, the ECB appears prepared to act in June and later in the autumn if necessary.

Heightened Inflation Concerns And Market Reactions

The ECB referred to risks linked to higher energy prices, including developments involving Iran, with oil prices at a four-year high. While longer-term inflation expectations remain stable, short-term expectations have increased. In response, market participants are pricing in potential rate hikes in June and July, with additional adjustments expected later in the year.

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Measured Policy Adjustments Against Economic Headwinds

At the same time, current conditions differ from 2022, when the ECB raised rates by a total of 450 basis points within one year. Recent data show softer labour market conditions and limited economic growth in the euro area during the first quarter, while core inflation has moderated slightly, indicating that broader price pressures remain contained for now.

Balancing Inflation Control With Economic Stability

Policy decisions are being shaped by the need to address inflation while limiting risks to economic activity. Higher energy costs may reduce growth by up to 0.5 percentage points, while indicators point to pressure across sectors, including services and exports, alongside tighter credit conditions.

Global Perspectives And The Memory Effect

Other central banks, including the Federal Reserve, Bank of England, Bank of Japan, and Bank of Canada, have also kept rates unchanged while monitoring inflation trends. According to Lorenzo Codogno, recent inflation developments may influence pricing and wage-setting behaviour, which could affect future inflation dynamics.

Conclusion

Current signals from the ECB reflect a policy approach that keeps rates unchanged while leaving room for adjustments as inflation and economic data evolve.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

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