ZAGREB, Sept 12 Demand at Croatia's reverse
weekly repo auction on Monday fell sharply from last week and
the interest rate dropped to 0.3 percent, the central bank said.
The central bank accepted all bids worth 30 million kuna
($4.51 million), down from 630 million a week ago, while the
interest rate was reduced to 0.3 percent from 0.5 percent.
Short-term liquidity in the banking system remains good,
while last week's higher demand was due to some banks having a
temporary squeeze in their kuna positions.
The overnight interbank rate was quoted at 0.71
percent on Friday and the one-week spot rate at 0.68 percent.
The rates are updated daily at 0900 GMT.
As well as the weekly auctions, the central bank also holds
four-year repo auctions roughly quarterly to inject longer-term
Here are the details of Monday's auction:
Auction date Previous action
Yield 0.3 pct 0.5 pct
Bids 30 mln HRK 630 mln
Assigned 30 mln 630 mln
($1 = 6.6545 kuna)
(Reporting by Igor Ilic)