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Friday, May 10, 2013 - 06.20 GMT
CB reduces Repurchase rate


The Monetary Board of the Central Bank decided to reduce the Repurchase rate and the Reverse Repurchase rate of the Central Bank by 50 basis points, respectively, thereby placing the Repurchase Rate at 7.00 per cent and the Reverse Repurchase Rate at 9.00 per cent.

In addition, the reserve maintenance period of commercial banks will also be increased to two weeks from one week with effect from 1st June 2013 in order to offer greater flexibility to commercial banks in managing their liquidity, while maintaining the Statutory Reserve Ratio at the current level of 8 per cent.

Considering the macroeconomic developments, the Monetary Board is of the view that a downward adjustment to the policy rates of the Central Bank is appropriate in order to stimulate domestic economic activity, particularly since inflation and inflationary pressures are at levels that do not pose any immediate risk to the economy.





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Last modified: May 10, 2013.

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