Dear All,
The Monetary Policy Committee held its third meeting for the year held on the 23rd and 24th of May 2023. In line with our expectation ahead of the meeting, the Committee voted to raise the policy rate by 50bps to 18.50% while keeping other parameters constant. While all members of the Committee agreed that a rate hike was necessary, 10 members voted for 50bps and 1 member opted for 25bps. The Committee’s decision represents the seventh consecutive rate hike (700bps cumulatively) in the cycle which began in May 2022.
In reaching its decision, the Committee continues to consider the contagion risk arising from the banking crisis in the US, sustained Eastern Europe crisis, volatility in the global oil markets and decline in global trade as key risks impacting the global economy. These factors constitute key downside risks to global growth prospects and have led to mixed economic performance across economies.
