Taking into consideration the recent economic developments as well as the expected economic developments the Monetary Board has decided to keep the Central Banks key policy rates unchanged.
Accordingly the Banks repurchase rate would remain at 7.25% and the Reverse Repurchase rate would remain at 9% respectively.
The Central Bank says the easing of the policy rates in recent times has helped improve domestic credit conditions thus supporting the sustained recovery in the domestic economic activities.
The Bank announced that the external sector too has recorded encouraging performance in recent months and the domestic economic sector has rebounded during this year.
Central Bank predicts that this growth momentum to continue into the next year too supported by the recovery in the Global economy.
Monetary Authorities informs that the credit granted to the private sector has picked up in recent months and would move in tandem with the level of economic activity.
The increase in year on year inflation to 7% by end November has mainly driven by supply side constraints in respect of several commodities.
It adds that the Food and non-alcoholic beverages accounted for over seventy per cent of this increase.
Article Views: 1,310