Economy
Repo rate maintained by 3.5%
Central bank maintains repo rate at 3.50% due to low inflation.
The Central Bank has decided to keep the repo rate at 3.5%, unchanged since December 2020. The repo rate, or repurchase agreement rate, is the interest rate at which a country’s central bank lends money to commercial banks. This decision, announced on September 27th, was influenced by low inflation, modest economic recovery, and the need to monitor consumer credit growth. Headline inflation dropped to 0.4% in August, down from 0.7% in June, while food inflation decreased from 2.3% to 1.5%. The bank noted growth in non-energy sectors like retail and construction, but the energy sector faced a decline. Consumer lending increased by over 10% year-on-year, particularly for motor vehicles. The next monetary policy announcement is set for December 30.
