The NBR Board decided to cut the policy rate by 0.75 of a percentage point to 17.0 percent
19.12.2004
In its meeting on 16 December 2004, the NBR Board made an overview of the recent developments in macroeconomic indicators, as well as the prospects for the period ahead.
In November 2004, the 12-month inflation rate fell to 9.9. percent, with the inflation forecast suggesting further reduction in December. The NBR Board decided to lower the policy rate by 0.75 percentage points to 17 percent in order to confirm the continued disinflation.
As aggregate demand is seen rising at a sustained rate and considering the relative price adjustments in the wake of corrections to administered prices in 2005 Q1, the NBR Board decided to maintain a cautious monetary policy stance so as to meet the inflation targets, including those on a longer time horizon.