Amid stronger cost-push pressures and the need to impact inflation expectations and prevent the second-round effects of rising global food and energy prices on other products and services, the NBS continued tightening monetary conditions.
As a reminder, last October, the NBS began a cycle of increasing the effective repo rate – the interest rate at which we have implemented repo transactions for years, making the best use of the flexibility of our monetary framework. From October until today, the effective repo rate was increased from 0.11%, as it was then, to 0.79%, where it stands today.