BoM raises Key Repo rate raised by 1%
At the meeting of the Monetary Policy Committee (MPC) held on 4 November 2022, it was unanimously decided to raise the Key Repo Rate (KRR) by 100 basis points (1%). The KRR now stands at 4%.
It will be noted that the penultimate adjustment to the KRR was made on 28 September 2022 when it was revised upwards by 75 basis points (0.75%). However, the MPC deemed it necessary to speed up the normalisation process in the readjustment of the KRR in a bid to rein in inflation - it will be recalled that accommodative measures, including downward revisions of the KRR, were introduced during the Covid-19 period. The latest revision made to the KRR was also an attempt to minimise the impact of similar actions undertaken by the US Fed, the ECB, and the Bank of England on the local economy.
Since the beginning of the year, the MPC has raised the KRR by 215 basis points (2.15%) cumulatively. The MPC will be meeting in December again to re-assess the situation. Stay tuned for more updates!
For more information, please check out the press release made by the BoM by clicking Here.