Monetary Policy Decisions

At today’s meeting of the Monetary Policy Committee (MPC), the following monetary policy decisions were taken:

1. The key official interest rates of the Central Bank, that is the marginal lending facility rate and the deposit facility rate remain unchanged at 4,50% and 2,50%, respectively. 
2. The reference value for the annual growth rate of bank credit remains at 11%.

During an extensive discussion, the MPC noted that the signals from international economic activity continue to be positive and it is expected that the recovery will progressively strengthen. The MPC took into account the fact that the Federal Reserve of the United States and the European Central Bank have kept their official interest rates unchanged, whereas the Bank of England raised its repo rate by 0,25 percentage points. 

Ιn view of the above, as well as the fact that domestic economic developments continue to be predominated by a significant fiscal deficit, relatively high inflation, a current account deficit and subdued economic activity, the MPC decided to maintain its policy stance leaving the official interest rates of the Central Bank unchanged. At the same time, the MPC expressed, once again, its deep concerns about the course of public finances and reiterates the need for increased fiscal discipline and consolidation.