OREANDA-NEWS. January 31, 2011. This decision was taken by the National Bank Administrative Board on January 27 to reduce inflationary expectations given the macroeconomic situation in the country, trends and forecasts of the macroeconomic indicators for a medium-term prospect, including outlooks of the short-term and medium-term inflation in conditions of potential uncertainty and possible challenges, InfoMarket was informed at the National Bank.

The decision on increasing the required reserves norm together with keeping the basic refinancing rate at 8% is aimed at enhancing the transmission mechanism of the monetary and credit policy, increasing saving, reducing GDP deviation risks and speculative capital inflow risks as well as at creating conditions for rising financial stability in the context of absorption of the inflationary pressure and fostering long-term economic growth.

The National Bank intends to continue firm management of the excessive liquidity in the banking system by means of the sterilization operations to optimize the monetary and credit policy transmission channels. The National Bank’s decision on increasing the required reserves norms to 11% from 8% will come into force on February 8, 2011.