At its July 29 meeting held, the Board of the Central Bank decided to keep the interest rate unchanged, at 14%, expanding the interest rate corridor to +/- 2 percentage points in order to ensure a balance between achieving the inflation forecast for this year and supporting economic activity amid growing inflationary risks and aggravation of the situation with the pandemic, the Central Bank said in a statement.
The decision was due to the fact that a faster-than-expected recovery in economic activity and aggregate demand, a significant increase in the volume of financial resources directed to the economy, higher inflationary expectations and risks associated with food supply require maintaining the current monetary conditions, with minor changes in monetary instruments, the statement underscored.
