The Monetary Policy Committee (MPC), at its November 22-23, 2021 Meeting, decided to raise the Monetary Policy Rate by 50 basis points to 9.0 percent. This is to help steer inflation to single digits in 2022 and to within the 6-8 percent target range by mid-2023 as stated in the 2022 Budget Address. The Committee also took into account the need to continue supporting economic growth and maintaining financial stability. Although inflation is projected to decelerate sharply over the forecast horizon1, it will still be above the upper bound of the 6-8 percent target range. The upside risks to the inflation outlook include the possible increase in fuel pump prices and electricity tariffs necessary to restore fiscal sustainability, as well as the predicted fourth wave of COVID-19, which could disrupt supply chains and trigger price increases. Further, effective implementation of fiscal reforms will significantly complement the achievement of a low and stable inflation objective.