March 8, 2012

The Central Reserve Bank’s key monetary policy rate was left at 4.25% as expected.  It’s been there since May 2011, when a 10-step, one-year tightening cycle culminated.  4.25% is 300 basis points above the pre-May 2010 low but 225 bps below the pre-August 2008 high.  A statement from bank officials stresses that future monetary policy changes will hinge on the evolution of inflation and its sources.  CPI inflation of 4.17% in the year to February still exceeded the 1-3% target range, but growth in this robust economy is moderating, and global risks persist.  The directory of the CBRP is scheduled to meet next on April 12.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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