The Monetary Policy Committee (MPC) held its last meeting of the year on the 22nd and 23rd of November 2021 where it unanimously voted to hold all parameters constant. In reaching its decision, the Committee acknowledged being faced with a policy dilemma. However, it maintained that its existing accommodative stance in the past has supported economic growth – GDP grew by 4.03%YoY vs 5.01%YoY in Q2:2021. Headline inflation also moderated further (to 15.99% vs 16.63% in September). While the Committee noted that the sustained interventions by the Apex bank should propel growth in the short to medium term, it recognizes the presence of key downside risks to growth – especially insecurity in key food producing areas and its effect on agriculture output.
