[2]  The coincidence of low inflation with a persistent decline in real interest rates corroborates the view that structural factors are likely to have played an important role in recent years (see left chart slide 5).
As negative effects of the above risks on the country’s risk premium and foreign trade flows have failed to materialise and the financial market has responded positively to the announced economic policy measures of the new government, the NBS cut the key policy rate to 9.0% at the May meeting with the aim of stabilising inflation at a low level.