RPP rejected motion to slash rates by 100 bp

During the December sitting of the Monetary Policy Council (RPP), the council rejected a motion to cut interest rates by 100 basis points, according to the minutes of the meeting, published on Thursday. The RPP decided to keep the rates unchanged, leaving the reference rate at 2.00 percent, the he lombard rate at 3.00 percent, the deposit rate at 1.00 percent and the rediscount rate at 2.25 percent. Only some of the RPP members “were of the opinion that amidst persistently negative price growth and moderate GDP growth, as well as the high likelihood of inflation remaining below the target in the event of low probability of significant acceleration of economic growth in the coming quarters, it was justified to lower interest rates considerably already at the current meeting,” the statement said.