The Monetary Board of the Central Bank (CB) has decided to reduce the Reverse Repurchase rate with immediate effect, while keeping the Repurchase rate unchanged.

 Accordingly, the Repurchase rate and the Reverse Repurchase rate of the CB would be 7.25 per cent and 9.00 per cent, respectively.

Considering the improving outlook for inflation, the CB commenced easing its monetary policy stance in 2009 in order to stimulate economic activity.

The Central Bank expects credit flows to the private sector to gather momentum during the remaining months of the year, alongside the anticipated pick-up in economic activity.
At the same time, the expected expansion in credit would serve to reduce the excess liquidity, which has built up in the money market over the past several quarters, stated the CB.