Key interest rates on hold
The Central Bank kept its main interest rates steady on June 15, in line with market expectations. The bank kept its closely watched late liquidity window at 12.25% and its benchmark repo rate on hold at
8%, saying it would stick to a tight policy stance until the inflation outlook significantly improved. All 16 economists polled by Reuters predicted the bank would leave the repo rate unchanged, as well as correctly predicting that the overnight lending rate, at 9.25%, and the overnight borrowing rate, at 7.25%, would remain unchanged. The bank said it would continue to use all available instruments in pursuit of its price stability objective. “The tight stance in monetary policy will be maintained until the inflation outlook displays a significant improvement. Inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered,” it said in a bank press release.