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Despite the clamour for lower interest rates, the monetary policy committee (MPC) maintained the status quo on rates in its most recent meeting. MPC also signalled a shift in the stance of monetary policy from accommodative to neutral, perhaps indicating the end of the rate cut cycle. The repo rate stands at 6.25 per cent as shown in Chart 1.
MPC’s stance appears to be driven by the belief that inflation continues to be a threat. While the headline inflation rate has fallen to 3.4 per cent as seen in Chart 2, core inflation continues to be sticky. The
MPC’s stance appears to be driven by the belief that inflation continues to be a threat. While the headline inflation rate has fallen to 3.4 per cent as seen in Chart 2, core inflation continues to be sticky. The
