Dec 2023 Financial News

Monetary Policy Announcement

Dec 29, 2023

The Monetary Policy Committee (MPC) took particular note of the rapid slowdown in global inflation and the less aggressive monetary stance adopted by major Central Banks. However, ongoing and emerging geopolitical factors are clouding the external economic policy outlook for 2024. Domestically, macroeconomic conditions appear favourable based on the retreat of inflation, sustained private sector credit growth and robust non-energy sector activity. Short-term TT/US interest rate differentials remain a concern as regards external balance, but could narrow further based on the projected downward path of foreign rates. Taking all these factors into account, the MPC agreed to maintain the repo rate at 3.50 per cent.