The Monetary Council has left the base rate on hold since signalling an end to an easing cycle at a policy meeting one year ago.
However, rate-setters have made use of “unconventional, targeted” instruments to ease monetary policy further, such as placing a limit on the stock of three-month deposits, the central bankʼs main instrument for sterilizing liquidity, as well as modifying the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates.
At the meeting today, the council left the interest rate corridor unchanged, with the O/N collateralized loan rate at 0.90% and the O/N central bank deposit rate at -0.05%.
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