1  Let me elaborate on the macroeconomic situation under which monetary policy is carried out at present. After the decline observed in the second quarter of the year, economic activity has resumed a moderate rate of expansion, fueled by private consumption and services, on the demand and supply fronts, respectively.
In its originally envisaged form, the tax would also cover collateralised money market transactions, known as repo transactions. This would cause considerable harm to the repo market, which plays a key role in the redistribution of liquidity among commercial banks. However, hampering it would make banks more dependent on liquidity provision by central banks. 5.