The Central Bank (CB) said that credit obtained by the private sector has been increasing in nominal terms towards the end of 2009 after being negatively impacted by the slowdown in economic activity domestically as well as globally.
The CBs Monetary Policy Review in February 2010 released this week also notes that the CB has relaxed its monetary policy stance during the course of 2009 in order to support economic activity and was made possible by the deceleration in inflation and the favourable outlook for inflation that prevailed.
Considering these developments, the CB stated that the Monetary Board, at its meeting held on February 15, decided that its current monetary policy stance will be maintained to facilitate the recovery in domestic economic activity, which is underway.
The Monetary Board will continue to monitor economic developments and prospects, with a view to reviewing its policy stance.
The Monetary Policy Review also noted that the gradual increase in year on year inflation, which increased to 6.5% in January 2010 from 4.8% the previous month, mainly reflects the dissipation of the base effect as well as the recovery in commodity prices globally. |
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