The government has committed to the International Monetary Fund (IMF) to increase the policy rate if new inflationary pressures emerge or external pressures were to threaten external and financial stability.
This has been noted in the Fund’s latest report “2024 Article IV Consultation and Request for an Extended Arrangement under The Extended Fund Facility”.
The Fund has recommended that further lowering of the policy rate should be predicated on evidence that core inflation is moderating and inflation expectations have re-anchored.
