The Central Bank decided to keep the Overnight Policy Rate (OPR) at 8.0%, balancing economic growth and price stability. It noted that current deflation is mainly due to energy price cuts and expects inflation to normalize in late 2025.
Impact of the Decision
Lower Interest Rates: Lending rates are falling, aiding economic recovery and credit expansion.
Private Sector Growth: Increased credit availability is boosting business confidence.
External Stability: Foreign reserves stand at $6.1 billion, with debt restructuring completed, strengthening the economic outlook.
The Central Bank’s decision to hold interest rates at 8.0% supports economic recovery and price stability. Inflation is expected to rise towards target levels by mid-2025, and the Bank will continue to monitor economic trends to maintain sustainable growth.
