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The Central Bank has allowed for a possible increase in the key rate at the next meeting
The base interest rate is the minimum rate at which the central bank issues loans to commercial banks and receives money as deposits. Its size affects inflation. When regulators raise interest rates, the money needed for the economy becomes more expensive. This means that bank interest rates on loans and deposits for individuals and businesses will increase. It is more profitable to open a deposit and save money than to spend money and take out a loan. Therefore, the demand for goods and services decreases, prices begin to grow more slowly, and inflation slows down.