This archive report was first published on 23 September 2019.
On September 23, 2019, the Monetary Policy Committee made a crucial decision to retain the Central Bank lending rate at 9%.
According to the MPC, the overall inflation rate remained within the target in July and August 2019, dropping to 5% in August from 6.3% in July.
The foreign exchange market also remained relatively stable, thanks to a narrowing current account deficit of 4.2% of GDP in the 12 months to July 2019, down from 5.5% in July 2018.
This positive trend is attributed to strong diaspora remittances, resilient exports of horticulture and manufactured goods, higher tourism receipts, and lower imports of food and SGR-related equipment.
Furthermore, the committee expressed optimism about the country's economic growth in 2019, driven by the implementation of the Big 4 agenda projects, improved weather conditions, and a stable macroeconomic environment.
Leading indicators of economic growth, such as electricity consumption, cement consumption, tourist arrivals, consumption-based taxes, and imports of intermediate goods, have also shown strong growth.
However, the committee noted that the global economic slowdown, partly due to trade tensions between China and the USA and shifting expectations on Brexit, has led to increased volatility in global financial markets.
