High inflation to last longer than forecast

The central bank made the adjustment earlier today when announcing that the bank rate would be maintained at 3.75 percent. The bank rate is the benchmark rate for all interest rates in the market and any adjustment affects both borrowers and depositors.

Inflation has been trending at nine-year highs since June, peaking at 8.9 percent in July, then settling at 8.8 percent in October. The higher inflation has been driven by increases in Value Added Tax and other administered prices this year.