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Thursday, June 17, 2010 - 6.05 GMT |
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No change in policy interest rates - CB |
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The Monetary Board of the Central Bank (CB) decided to maintain the policy interest rates of the Central Bank unchanged.
Growth in the money supply continues to moderate while accommodating an expansion in credit to the private sector. Credit extended to the private sector by the commercial banks, which contracted during much of 2009, has recorded a positive growth since March 2010, stated the CB in its Monetary Policy Review – June 2010.
Expansion in credit obtained by the private sector indicates a gradual pick-up in economic activity, and this expansion is expected to gather momentum, particularly in view of the prevailing supportive monetary conditions.
Indicators of external sector performance point to encouraging developments. Exports have recorded a healthy growth for the first quarter of 2010. Imports have also increased in line with the recovery in economic activity, the CB further stated.
The recent relaxation of selected import tariff would provide additional impetus to the economic recovery underway. Workers’ remittances, which have recorded a growth of 14.1 per cent, year-on-year, for the first quarter of 2010, meanwhile, continue to cushion the current account.
Further, the Central Bank continues to be a net buyer in the domestic foreign exchange market. Reflecting these trends, the foreign reserves of the country remain at comfortable levels.
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(009) |
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