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Tuesday, October 19, 2010 - 6.33 GMT |
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CB to maintain
policy interest rates unchanged |
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The Central Bank has decided to maintain the policy interest rates unchanged following its monthly monetary review meeting held Monday (18). Accordingly, the Repurchase rate and the Reverse Repurchase rate of the Central Bank would remain at 7.25 per cent and 9.00 per cent, respectively.
Economic growth remains robust and broad based with all sectors contributing to the expansion of output. Credit flows continue to rebound with credit to the private sector from commercial banks growing on a year on year basis by 12.8 per cent in August 2010, further reinforcing the growth prospects. At the same time, year on year growth in broad money remains moderate at 13.9 per cent in August, stated the Central Bank in its Monetary Policy Review – October 2010.
The successful issue of the 10-year international sovereign bond on 27 September at a comparatively lower coupon rate of 6.25 per cent and attracting an order book of more than 6 times the value of the bond reflects the improved investor confidence in the economy. Gross international reserves further increased with the receipt of the fifth tranche of the IMF-SBA facility and the proceeds of the international sovereign bond, it further said.
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