October 21, 2009
At its meeting on 19 October 2009, the Monetary Council reviewed the latest economic and financial developments and decided to reduce the central bank base rate by 50 base points: from 7.50pct to 7.00pct, with effect from 20 October 2009.
The Monetary Council expects domestic economic growth to resume in the middle of 2010. Inflation is likely to exceed the medium-term target temporarily due to the indirect tax increases, and then to move below it materially in the second half of next year. Consistent with the more benign outlook for the world economy, there has been a steady improvement in global financial markets in recent months; however, it remains to be seen whether, and for how long this process will continue.
