“At its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22%, the central bank said in a statement.

The MPC said that the inflation has begun to decline noticeably from the second half of fiscal year 2024, however, it observed that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations.

“This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5% to 7% by September 2025. The Committee reiterated that this assessment is also contingent upon continued targeted fiscal consolidation and timely realization of planned external inflows, it added.