This was on top of the 40 bps effective rate hike through the introduction of the Standing Deposit Facility (SDF) at 3.75 per cent, which resulted in a concomitant increase in the weighted average call rate (WACR), compared to the liquidity absorption rate under the fixed rate reverse repo regime. The WACR, as you would be aware, is the operating target of monetary policy.
We should take the necessary time to assess the impact of our rate hikes and of phasing out the TLTROs. As we normalise our monetary policy, we should expect bank lending conditions to tighten. What we need to avoid, though, is a sudden stop in the supply of credit to the broad economy.