The National Bank takes task-oriented actions to maintain a balance between aggregate supply and aggregate demand in the economy on the backdrop of socio-economic programs oriented towards high economic growth and ongoing rise in country’s financial opportunities, elevating income of the population and modernization of the infrastructure of the economy. These measures target further strengthening control over monetary factors of inflation. A high refinancing rate with the application of the ‘interest rate corridor’ set from the second quarter of the current year on National Bank operations created certain disinflation effect in the economy. An ongoing flexible interest rate policy is required to further strengthen disinflation processes by further increasing the savings norm in the economy and attaining restriction of aggregate expenses. Along with the above, the Management Board of the National Bank decided to increase the refinancing rate to 13% from 12% leaving the ceiling and the floor of the interest rate corridor unchanged from 1 June 2007 to boost the effect of the monetary policy on inflation on the basis of assessment of current macroeconomic stance in view of continuing prevalence of growth rate of aggregate demand over that of aggregate supply pushing inflationary pressures. The National Bank will keep monitoring the dynamics of monetary and non-monetary factors of inflation and consider making changes to the refinancing rate depending on the inflation rate.