Monetary Policy
MPC Press Release - October 2003
Friday, 31 October 2003 00:00

Available information and data indicate considerable improvement in the key macroeconomic indicators during the third quarter, and that the process of disinflation is taking hold. Headline inflation has continued its downward trend. Twelve-month consumer price inflation eased from some 29.6 per cent in June to 27.7 per cent in August. The average monthly increases in the index have diminished steadily since the spike in February 2003 and have been the lowest since 1999.

Several distinct but mutually reinforcing domestic and external influences have been at work. The fiscal deficit along with the public sector borrowing requirement is now being reduced. Government finances continued to improve through September. Government revenue was higher than projected and expenditure was kept within budgeted levels. Provisional data for the year through September 2003 indicates that total receipts for government amounted to some ¢13,014 billion, an increase of some 71.0 percent above 2002 levels. Mean while, total expenditure was ¢12,381.0 billion, some 40.0 percent above the level for 2002.

Road and non-road arrears (DACF and GET Fund) were cleared at a somewhat faster pace, exceeding budgeted levels and no new arrears were accumulated in respect of the DACF, GET Fund or SSNIT contributions during the period.

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