Interest rates increased up by Central Bank

Interest rates are going up, according to an announcement by the Central Bank (CB) on Friday following a meeting of the Monetary Board. Policy interest rates, which dictate lending and borrowing rates, have been unchanged for many months until today (Friday).
“Tthe Monetary Board decided to increase the key policy interest rates of the Central Bank, namely the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points each, to 7.25 per cent and 8.75 per cent, respectively, with effect from Friday March 24,” the CB release said. 

The statement said the decision was taken after “the Monetary Board was of the view that further tightening of monetary policy is necessary as a precautionary measure, in order to contain the build-up of adverse inflation expectations and the possible acceleration of demand side inflationary pressures through excessive monetary and credit expansion”. 
The Monetary Board also took into account the notable improvements in fiscal operations, which have resulted in the overall budget deficit in 2016 declining to envisaged levels. The Board was of the view that these improvements, together with the substantial upward movements already observed in market interest rates, have reduced the required adjustment in policy interest rates, the CB said. – ENDS-