Monetary Council Reduced the Central Bank Rate by 100 Basis Points

At its meeting on 27 July 2009, the Monetary Council reviewed the latest economic and financial developments and voted to reduce the central bank base rate by 100 basis points from 9.50 pct to 8.50 pct, with effect from 28 July 2009.

In the Council’s judgment, the recent improvements in perceptions of risk and external balance have allowed, and the developments in the real economy and inflation justified, a reduction in the central bank base rate. Interest rates may be reduced further, consistent with the inflation targeting framework, if trend inflation developments do not jeopardize price stability and if perceptions of risk allow it.