Central Bank’s Monetary Review Policy limited to 6 times a year

The Central Bank’s Monetary Review Policy, which has traditionally been held by the then Monetary Board every month followed by an announcement to the market, will henceforth be announced only six times a year, on a bi-monthly basis.

In a statement on Wednesday, the banking regulator said the number of monetary policy reviews during a year will be reduced to six from 2024, facilitating the requirement under the CBA for the Monetary Policy Board to meet at least once in two months.

The Monetary Policy which serves as an important guideline on interest rate fluctuations is keenly awaited by the market,

The Central Bank said it is also considering moving towards a single policy interest rate mechanism, instead of the existing dual policy interest rates, to improve the monetary policy transmission and signalling effect of the monetary policy stance.

The bank normally announces the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR).