The Monetary Policy Committee, at its May 15-16, 2023 Meeting, decided to raise the Monetary Policy Rate by 25 basis points to 9.50 percent. The decision was informed by the projection that inflation will continue to be above the target band of 6 — 8 percent over the forecast/ horizon l. The Committee also took into account fragile growth, and vulnerabilities and risks in the financial sector. Continued delays in external debt restructuring negotiations, tighter global financial conditions, higher maize prices due to the anticipated lower production amid strong regional demand, as well as the impact of the prolonged Russia-Ukraine war on food and energy prices remain key upside risks to the inflation outlook. Observed budgetary discipline and continued implementation of fìscal consolidation measures and broader economic reforms outlined in the Eighth National Development Plan (8NDP) will remain important anchors in achieving lower inflation and macroeconomic stability.

Source: BOZ