Decisions adopted by the Governing Board on the occasion of its 269th regular meeting on 13 May 2003

Important matters dealt with and decisions taken by the Bank of Slovenia Governing Board on its 269th regular meeting:
The Board analyzed the inflation movements in the last six months and possible economic development until the end of 2004 and adopted short-term monetary policy orientation. Governor Mitja Gaspari will make the details public in the press conference on 14 May 2003. The respective publication will be available on the website - in Slovenian on 14 May, in English by end of May 2003.

It reduced the interest rates of selected monetary policy instruments with the purpose to adapt them to conditions on the money market and to reduce the difference between domestic and interest rates abroad as follows:

• 60-day Tolar bills: from 7.50% to 7.25%
• 270-day Tolar bills: from 8.75 to 8.25%
• repurchase facility for bills denominated in foreign currency: from 8.25% to 8.0%
• lombard loan: from 9.75% to 9.0%

The reduction reflects moderate inflow of foreign exchange in the balance of payments, favorable structure of Tolar bills (with long-term bills prevailing), and the decreasing slope of the money market yield curve.

The new rates apply as of 14 May 2003.