Press Release 23 –
Reserve Bank Leaves interest rate Unchanged
Press Release No. : 23/2006
Date : 27 October 2006
The Reserve Bank Board, at its monthly meeting on 26 October 2006, decided to leave the Policy Indicator Rate (PIR) unchanged at 4.25 percent.
In arriving at its decision, the Reserve Bank Governor and Chairman of the Board, Mr. Savenaca Narube said that “on balance, in analysing current economic developments, the effects of the monetary policy tightening earlier in the year is taking some time to filter through to credit and economic activities. He further emphasised that whilst overall credit growth is coming down, the pace of growth is still high. Mr. Narube also reiterated that economic conditions remain basically unchanged with buoyant demand, rising imports and sluggish export performance.
The Bank will continue to closely monitor these developments over the coming months.