Press Releases

Reduction in key interest rates of the Bank of Greece

19/04/2000 - Press Releases

The Monetary Policy Council of the Bank of Greece, after taking into consideration:

• the continuing decline in core inflation, which fell to 1.6 per cent in March 2000;

• the expected favourable impact on inflation of the recent decline in world oil prices;

• the containment of the annual growth rate of the broader liquidity indicator M4N below the indicative projection range; and

• the estimated effect of capital market conditions on inflation and economic activity;

has decided the following:

• the Bank of Greece intervention rate in the interbank money market for the acceptance of 14-day deposits is reduced to 8.75 per cent from 9.25 per cent;

• the interest rate of the first tranche of the overnight deposit facility is reduced to 8.0 per cent from 8.75 per cent and the interest rate of the second tranche to 7.5 per cent from 8.0 per cent;

• the interest rate of the Lombard facility is reduced to 9.5 per cent from 10.25 per cent.

The above reduction in key interest rates of the Bank of Greece is consistent with the maintenance of the anti-inflationary stance of monetary policy.