BoB cuts rate to spur weak credit growth

With credit growth currently at a four-year low due, in part, to tight liquidity in the market, a Monetary Policy Committee (MPC) meeting held yesterday decided to reduce the cost of borrowing to drive spending by both businesses and households.

“The current state of the economy as well as the domestic and external economic outlook, including the inflation forecast, suggest that easing monetary policy is a step in the right direction; it would be consistent with maintaining inflation within the Bank’s medium-term objective range of 3 – 6 percent.