To support economic growth and price stability, monetary policy has remained highly accommodative during 2014. The central bank kept the interest rates stable as witnessed by T-bills rates, maintained the exchange rate peg at its current level, pumped money into the system through subsidized loans and added to its sizable holdings of government securities.
The Lebanese pound yield curve remained stable throughout the year, while that of Eurobonds fluctuated however within a small range. The central bank managed to maintain interest rates at a level that is conducive to economic growth. Interest rates on T-bills didn’t change during 2014 with the average yield on the 1-year T-bills at 5.35% while the average yield on the 5-year T-notes stayed at 6.75%. On the Eurobonds level, yields on 5-year and 10-year maturities had fallen by 36 basis points and 61 basis points respectively during the year …
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