Since the beginning of January, when inflation started to decline, the bank has been bucking increasing pressure to begin reversing monetary tightening. Raising interest rates couldn’t continue indefinitely without hurting the economy, according to those who opposed the bank’s stringent policy position. It also coincides with the budget announcement and the ongoing negotiations between the government and the IMF for another bailout package. The bank is clear about the prognosis, saying that any potential interest rate reductions will be contingent upon budget evaluations and IMF interventions. As of right now, the bank is purported to have simulated the IMF measures and the budget using known parameters.

Source: The Patriot June 12, 2024 09:05 UTC