Interest rate hike looms

Citing a favourable outlook the BoB cut the benchmark bank rate by two percentage points last year to 7.5 percent as inflation, measured by Consumer Price Index (CPI), eased to a four-decade low.  

However, inflation quickened slightly to 4.5 percent year on year last month from 4.4 percent in March and analysts forecast the trend to continue for the remainder of the year although it will remain within the central bank’s 3-6 percent objective.