However, if any bank feels the need for funds, it can now get loans from the NBU even faster and easier than before. In addition, in order to free up the funds of banks to support the economy, we have postponed the formation of capital buffers and recommended that banks refrain from paying dividends.
The economy is currently judged to be operating at, or just above, its potential, and the outlook to 2008 is for it to remain close to potential. The outlook is for core inflation to remain near 2 per cent from now to the end of 2008, and for total CPI inflation to return to the 2 per cent target early next year.