The Central Bank eased interest rates more cautiously at its latest meeting, following a sharper-than-expected rise in inflation in September.
The Monetary Policy Committee Oct. 23 lowered the one-week repo rate, the policy interest rate, by 100 basis points from 40.5% to 39.5%.
The bank also lowered its overnight lending rate from 43.5% to 42.5% and its overnight borrowing rate from 39% to 38%.
The median year-end policy rate expectation was 37.5%.
The bank had earlier lowered rates by 3 percentage points in July and 2.5 percentage points in September.
The bank noted that the underlying trend of inflation increased in September, while recent data showed demand conditions remained at a disinflationary level, though the pace of disinflation had slowed.
It emphasized that maintaining a tight monetary policy until price stability is achieved would support disinflation through demand, exchange rate, and expectations channels.
The next monetary policy meeting is scheduled for Dec. 11.
