Current monetary policy stance is appropriate: CB

SAYS IF INFLATION IS MOVING TOWARDS GOAL OF 5.0% IN MEDIUM TERM, THERE IS NO REASON TO CHANGE POLICY FROM WHERE IT IS NOW | SAYS CURRENT DEFLATIONARY CONDITIONS ARE EXPECTED TO SUBSIDE FROM MARCH ONWARDS BEFORE TURNING POSITIVE BY MID-2025

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The Central Bank, as widely expected, left the key policy rate unchanged at its second monetary policy review held earlier this week, as it reiterated that the current monetary policy stance is appropriate in achieving its desired inflation target of 5 percent, while supporting the ongoing recovery in the economy.

Currently, the overnight policy rate or the OPR, which acts as the key policy rate since the Central Bank transitioned into a single rate policy structure back in November last year, stands at 8 percent.

The OPR targets the average weighted call money rate, which is now at 7.95 percent. The Standing Deposit Facility Rate and Standing Lending Facility Rate, despite they no longer being the policy rates, stand at 7.50 percent and 8.50 percent, with a 50 basis points plus or minus from the OPR.