As the Euro looks like it will move into depreciation-mode after the
ECB rate cut, one thought about a second-degree effect could be on the
terms-of-trade. Cyprus has been increasingly exporting (goods) outside the eurozone, especially since 2011. The depreciation will put a nice push on these exports.
We are still concerned that, because Cyprus (small-open-siland economy)
depends almost entirely on imports for its inputs, the depreciation
will increase, rather that decrease relative prices as it puts pressure
on production costs. That aside, exports to non-Ez countries (here a
rough proxy including non-EU plus the UK, a makor trade partner) could
get a boost.