The central bank’s Monetary Policy Committee (MPC) has announced a 25 basis points reduction in its key rate, lowering the Monetary Policy Rate (MoPR) from 2.65 percent to 2.4 percent. This decision marks the first cut since August 2022 when the bank had previously opted to increase the rate.
Central bank governor Cornelius Dekop highlighted that the MPC foresees the economy operating below full capacity in the short term, with no imminent demand-driven inflationary pressures. The Ministry of Finance projects a GDP growth moderation to 3.8 percent in 2023, followed by a recovery to 4.4 percent in 2024, down from the 5.8 percent increase observed in 2022.
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