On the one hand, downward pressures could materialise if import or producer prices were to fall further, while, on the other, wage developments would become a matter of concern if wage increases were higher than expected. In addition, any relaxation of fiscal policies would negatively affect the price climate as well as the credibility of the Stability and Growth Pact.
Up to now, the policy rate is kept at this level. We also reduced the reserve requirement ratio (RRR) to increase loanable funds. We incentivized lending to MSMEs—a sector hit hard by the pandemic—by treating new loans to them as compliance with the reserve requirement.