NATIONAL BANK LOWERS BENCHMARK INTEREST RATE TO 2.25 PERCENT.
The National Bank lowered the benchmark interest rate by 0.25 percentage points, from 2.50 to 2.25 percent. The decision was taken Tuesday at the meeting of its Operative Monetary Policy Committee.
Based on the existing economic and financial conditions and existing risks, the Committee said there was room for further relaxation of the monetary policy. The supply of treasury bills at the auction to be held on 13 March has been kept at 25 billion denars, the National Bank said in its statement.
The decision to drive down the benchmark interest rate is a result of the retained continuity of favorable movements in the foreign exchange market, which suggests absence of pressure in the external sector and domestic stability. According to the National Bank, there is also a moderate increase in domestic prices and consequently absence of price pressures.
The National Bank says additional room for further monetary relaxation is created by the European Central Bank's latest statement about the keeping of interest rates at the current level for a longer period of time than earlier expected and about further relaxation through other monetary instruments.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||BUSINESS NEWS|
|Publication:||INFOMAC Daily News Service|
|Date:||Mar 13, 2019|
|Previous Article:||MZ INFRASTRUCTURE CLOSES Q4 OF 2018 WITH LOSS OF EUR 1.6 MN.|
|Next Article:||PROSECUTOR'S OFFICE SAYS DRIVER DROVE FAST, SOMETHING WENT WRONG WITH BREAKS.|