Monetary policy rate increased by 0.5% points from 29.5% to 30%

The Monetary Policy Committee has increased the monetary policy rate by 0.5 percentage points from 29.5 per cent to 30 per cent.

The increase was due to elevated risks to inflation driven by rise in food prices.

After declining consistently between January to April, inflation resumed an upward trend again in May and June, increasing to 42.2 per cent and 42.5 per cent respectively.

The policy rate is of keen interest to businesses, signals the rate at which the central bank will lend to commercial banks.

It also subsequently influences average lending rates on loans to individuals and businesses.

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