As the central bank’s Monetary Policy Committee (MPC) meets next week for the third time this year, economists as well as financial analysts hold conflicting views as to the decisions of the monetary authorities whether to hold or cut rates.
While some expressed confidence that in view of the current moderation in the inflation rate and exchange rate stability, a marginal reduction Monetary Policy Rate (MPR) could be the most likely outcome, others see the benchmark interest rate retained.
The 301st meeting, scheduled for 21-22 July, 2025, presents a rare opportunity for the monetary authorities to assess the economy and make decisions based on available data and forecasts on borrowing costs after raising the rates all through last year and holding it steady twice this year at 27.5 percent.
