Monetary Policy
MPC Press Release - July 2007
Tuesday, 31 July 2007 00:00

On the global front, we are beginning to see signs of stabilization and recovery with forecasts of slightly higher growth following a period of turbulence which characterized the first half of the year. The anxiety of markets and policymakers is giving way to some kind of hope, greater confidence, and positive expectations, and cautious optimism about global recovery and restoration of financial stability.

For the first time since the beginning of the crisis, there is consensus revision of global growth upwards to 2.5 percent in 2010 compared with an earlier forecast of 2.0 percent projected at the end of the first quarter. And credit markets are beginning to function well, as the extraordinary stimulus measures and interventions in the financial system begin to take effect.

Domestically, the last six (6) months have seen a considerable uncertainty following from the large macroeconomic imbalances at the end of 2008, but also associated with the global financial turmoil. These have reflected in exchange rate expectations, inflation and inflation expectations, and general macroeconomic uncertainty.

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