The National Bank is taking consistent actions to shape a monetary policy according to international standards and improve mechanisms to realize it. As it has already made public, the National Bank is starting to realize a ‘interest rate corridor’ concept from the second quarter of 2007 as part of making monetary management more effective. The goal of introducing the ‘interest rate corridor’, one of the progressive mechanisms for monetary policy realization, is to expand the capacity of the National Bank to impact cost of money in the economy paving the way to higher effectiveness of the dynamic monetary policy in view of the new operational structure. (See the press release dated 25/01/2007). Flexible regulation of interest rates on National Bank operations plays a positive role too, along with maintaining balance between aggregate demand and aggregate supply, and exercising higher control over monetary factors of inflation. Making such changes to interest rates will lead to high savings in the economy and expansion of the banking sector’s resource base at the expense of additional funds attracted. Consequently, this measure will have a key anti-inflationary effect by adequately influencing the expenses structure of the population. Taking into account the above, the Management Board of the National Bank decided to maintain the ceiling of the interest rate corridor at 19%, the floor at 5%, and the refinancing rate at 12% from 2 April 2007 to contain excess demand for money by affecting interest rates meanwhile having a downward effect on inflation.