ChainCatcher news, European Central Bank board member Patsalides warned that if Donald Trump, the elected President of the United States, follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. The Central Bank of Cyprus Governor stated in Nicosia on Thursday, "Trade tensions are escalating, and if trade restrictions become a reality, the result could be inflation, economic recession, or worse, stagflation."

He noted that while there is room to continue lowering borrowing costs, it should be done "at a steady pace and magnitude."