Croatian National Bank Lifts RRR 100bps to 14.00%

The Croatian National Bank increased the bank reserve requirement rate by 100 basis points to 14.00% from 13.00% previously; effective from the 12th of October.  The Bank said of the move: “Through this measure the central bank intends to withdraw from the banking system about 3.1 billion kuna (2.6 billion from the kuna component and 0.5 billion from the foreign exchange component of the reserve requirement).The purpose of withdrawing excess liquidity from the system is to stabilise the kuna vs. euro exchange rate, i.e. to ease depreciation pressures.”  The Bank also noted it would “take measures to prevent excessive exchange rate fluctuations not based on real economic movements.”