Under such circumstances, interest rate expectations are not formed independently of the view that the market has of central bank actions. In other words, if we signal a change in the monetary policy stance, this will be reflected in current market rates ahead of the actual change in the policy stance.
Both the initial rate and the (lower) rate actually applied to counterparties based on the achievement of lending targets have been lowered by 25 basis points and the targets’ attainment has also been facilitated. The maximum amount that the counterparties can borrow through these operations will be raised to € billion.