Monetary Policy
MPC Press Release - July 2009
Friday, 31 July 2009 00:00

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.

comprehensive policy framework has been put together which has been favourably considered and supported by resources of both the World Bank and the IMF. The return to the IMF to support the policy framework is part of the stabilization process seen in most emerging and frontier developing economies globally, following the global financial and economic crisis. The underlying fiscal and monetary policies have been designed to unwind the imbalances that characterized the past 18 months, and further strengthen the consolidation process to secure economic fundamentals better to sustain rapid growth with financial stability.

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