For banks whose eligible net lending exceeds a benchmark, the rate applied in TLTRO III will be lower, and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation plus 10 basis points. A press release with further details of the terms of TLTRO III will be published at 15:30 CET today.
By committing to continuing to expand the monetary base until the observed CPI inflation exceeds the price stability target of 2 percent and stays above the target in a stable manner, the Bank aims to work on people's perceptions of inflation in a more forceful manner.