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The council also left the O/N deposit rate at 5.25% and the O/N collateralized loan rate at 7.25%. The rates mark the ends of the central bank’s symmetric interest rate corridor.
In a statement issued after the meeting, the Council acknowledged a decline in risk premia on domestic assets after the general election “driven in part by expectations related to EU funds and euro adoption”.
“Looking ahead, it is key that the improvement in risk premia persists,” it added.
“Maintaining tight monetary conditions is warranted,” the council said.
“A careful and patient approach to monetary policy remains necessary due to inflation risks arising from geopolitical tensions and the uncertain financial market environment,” it added.
“The council is constantly assessing the impact of incoming macroeconomic data and financial market developments on the inflation outlook, based on which it will take decisions on the level of the base rate in a cautious and data-driven manner,” the rate-setters said.
Maintaining the stability of domestic financial markets, especially the foreign exchange market, is “crucial” for anchoring inflation expectations and thus achieving price stability, the council added.
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