BoB keeps interest rates steady

At a Monetary Policy Committee (MPC) meeting on Tuesday, it was concluded that the medium term outlook was positive, with inflation forecast to remain within the 3 – 6 percent objective. The central bank uses interest rates to influence economic activity through money supply control.  

The MPC said the current state of the economy, domestic and external economic outlook and the inflation forecast, suggests that the current monetary policy stance is consistent with maintaining inflation within the bank’s 3 – 6 percent objective in the medium term. Hence, the decision to maintain the bank rate at 7.5 percent.