The MNBʼs Monetary Council decided at a meeting today to lower the top of the corridor, that is, the rate for O/N collateralized loans, from 75 bps to 25 bps over the base rate. The bottom of the corridor, or the O/N rate for central bank deposits, will remain at 125 bps under the base rate. Calculating with the central bankʼs key rate – 1.20% for the three-month deposit – the O/N collateralized loan rate stands at 1.45% and the O/N central bank deposit rate at -0.05%.
The interest rate conditions will take effect from March 23, the MNB said.
The decision came about two weeks after the European Central Bank cut its main interest rate by 5 bps to 0%.
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