Cyprus families and small firms to feel the pinch as ECB set to raise rates Thursday

Small businesses and borrowers in Cyprus face a fresh squeeze from an expected European Central Bank rate hike on Thursday, economist Tassos Yiasemides has warned, with the eurozone showing signs of stagflation.

Countries like Cyprus and Greece, where the economy relies heavily on small businesses, could feel the effects most sharply, Yiasemides told CNA. Higher borrowing costs could force small and medium-sized firms to delay investment, cut hiring and reduce output, he said....