Low LC 50 points rate Lombard

The Central Bank announced that at its meeting of November 2011 monetary policy it decided to leave its policy rate at 6.75% and decided to reduce the Lombard, that interest rate by 50 basis points in it forward will be 9% per year, in order to strengthen the corridor of rates of interest of monetary policy

Rate policy of the Central Bank, i.e. that it pays on short-term banking (overnigth) paid deposits, is used as a sign of its monetary policy stance. While the Lombard is the maximum rate of interest of loans from the Central Bank institutions financial.

Also reported that it will continue to monitor the evolution of the global economy, as well as the behaviour of the domestic economy in order to react in a timely manner to domestic inflationary pressures building up and maintaining price stability and the proper functioning of the financial system and systems of u000apayments.

In a document, the CB explains that the decisions with respect to the reference rate are conditioned by the behavior of the main determinants of inflation, because, in October 2011, the monthly inflation rate was 0.03%, reducing the annualized rate at 0.7 percentage points to 9.6% in September to 8.9% in that month.

Enero-octubre accumulated inflation stood at 7.5%, while the annual underlying inflation was reduced to 5.4%.

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