Cyprus rates stay put

NICOSIA (Reuters) – Cyprus’s Central Bank kept its benchmark interest rates unchanged after a review yesterday, its governor said. «The monetary policy committee decided to keep rates unchanged,» governor Christodoulos Christodoulou told reporters. The benchmark is currently 5.5 percent for advances and 3.5 percent for deposits. Cyprus is expected to converge its rates with those of the eurozone area gradually as it edges closer toward linking its currency to the European Exchange Rate Mechanism (ERM2), the antechamber to euro adoption. Government officials say they hope to conclude preparations for admission to the currency stabilization mechanism by the end of this year. The economy is showing signs of a rebound and GDP growth was expected to expand by 3.5 percent in real terms this year, the monetary policy committee (MPC) said in a report.