The new policy rate now targets the call money rate for efficient policy transmission
The CB governor says that a single policy rate targeting the call money rate will be more efficient in the transition of monetary policy to the government securities market and the real economy.
The move is expected to provide further impetus to the continued economic recovery.
Hence, this move is expected to provide further impetus to the ongoing economic recovery.
The Central Bank also expects the economy to grow by 4.5 percent to 5.0 percent level in 2024, higher than anticipated at the beginning of the year, as the external sector has regained strength, which also helped to ease monetary policy, as the country now operates with sufficient external buffers by way of US $ 6.5 billion worth of foreign currency reserves.
With the latest cut to the policy rate, the Central Bank has now delivered a total of 725bps of rate cuts from June 2023, when the current monetary easing cycle began.
