Over the current year the country economy continued to grow dynamically, surplus of currency balance increased considerably and the country’s creditor position further strengthened in relations with foreign countries. On this backdrop, banking system stability was reliably protected from spillover of foreign crises.

Downturn and deflationary trends in global economy amplified. Economic growth began slowing down in advanced countries, the global financial system continued to face liquidity crisis. On this backdrop, central banks started to take impressive actions package to maintain financial stability.

Under such global circumstances, the National Bank continues consistent measures oriented towards further amplification of financial stability. Recent decisions on monetary policy easing (reduction of the refinancing rate and reserve requirements) yielded positive outcome in terms of stronger financial stability. These and other preventive measures resulted in further improvement of liquidity indicators.

As the next related step, the Management Board of the National Bank decided to shift the refinancing rate to 10% from 12%, the ceiling of the interest rate corridor to 15% from 17% and the floor to 1% from 3% from 31 October 2008.