At the first Monetary Policy Committee (MPC) meeting of 2023, the committee voted to tighten its stance further, by 100bps. The Monetary Policy Rate (MPR) thus stands at 17.50% with other parameters being held constant. This hike marks the fifth consecutive increase in the MPR, following rate hikes in May (1.50%), July (1.00%), September (1.50%), …
In arriving at its decision, the Committee weighed various economic developments, including the weakening global output due to supply chain disruptions worsened by the Russia-Ukraine war. This, along with COVID-19 lockdown in China, persisting global inflationary pressures, tightening financial conditions owing to broad-based aggressive policy, capital flow reversals in emerging markets and its consequent upward …
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