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Tuesday, November 16, 2010 - 05.35 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 yesterday (15).
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.
Recent domestic macroeconomic trends have been encouraging. Economic activity expanded significantly in real terms in the first two quarters of the year. External trade has recovered, and earnings from exports have recorded an increase for the first three quarters of the year, stated the Central Bank in its Monetary Policy Review – November 2010.
The domestic foreign exchange market too has continued to remain stable. Meanwhile, international reserves of the country still continued to be at above targeted levels, which situation is likely to continue into the forthcoming period, notwithstanding the policy measures being introduced to deal with this situation, it further said.
Improved credit conditions have increased demand for credit. Credit flows to the private sector have shown an upward trend this year, with the year-on-year increase in credit granted by commercial banks to the private sector reaching 15.5 per cent by September, the Central Bank further stated.
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