The Central Bank has maintained the Monetary Policy Rate (MPR) at 14.5 per cent.
The decision by the Central Bank to maintain the MPR, according to Dr Ernest Addison, is on the back of balanced inflation and economic growth.
“Under the circumstances, the committee is of the view that the race to immediate outlook for inflation and growth are broadly balanced and decided to keep the policy rate at 14.5 per cent,” noted the Governor at the Central Bank’s 96th Monetary Policy Committee (MPC) press briefing.
The current MPR – reduced by 150 basis points from a previous 16 per cent policy rate – was reached and implemented by the Central Bank as part of counter-cyclical measures to mitigate the impact shock of the coronarivurs pandemic on the country.
Speaking further at the 96th MPC press briefing, the Governor also noted that, headline inflation which currently stands at 10.5 per cent is anticipated to return to the medium target band of 8+-2 by the second quarter of 2021.
