The Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 16%.
This decision is aimed at ensuring that elevated inflation does not become entrenched & that risks to financial stability are contained, thus paving the way for higher growth on a more sustainable basis. Higher food & core inflation are key contributors to elevated inflation.
After incorporating the Post-Disaster Needs Assessment of the floods and latest developments, the FY23 projections for growth of around 2% and a current account deficit of around 3% of GDP shared in the last monetary policy statement are re-affirmed.
