The Central Bank also made downward adjustments to overnight interest rates. Accordingly, the overnight lending rate was lowered from 42.5% to 41%, and the overnight borrowing rate was reduced from 38% to 36.5%.
The decision text stated that consumer inflation in November was lower than expected due to developments in food prices, and that there was a slight decline in the main trend of inflation in October and November after September.
It was also noted that growth in the third quarter was stronger than expected, and it was emphasized that leading indicators for the final quarter show that domestic demand continues to support the disinflation process.
The CBRT stated that there are signs of improvement in inflation expectations and pricing behavior, but that risks in these areas still persist, and noted that data driven steps will continue in line with the price stability objective.
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