The Monetary Policy Committee (MPC) released its fifth Bi-monthly Policy Statement today. The MPC recognized that inflation remains firmly under control, retaining its inflation projection for the second half of FY 2018 and assessing that the risks to this projection are evenly balanced. For that reason, it has maintained a neutral policy stance.

The MPC has also retained its annual GVA forecast for FY 2018 of 6.7 per cent recognizing several significant developments and emphasizing the Government’s reform efforts such as GST, Bank Recapitalization Package and improving Ease of Doing Business Ranking.

The Government has taken note of the MPC statement.

Monetary policy stance maintained: neutral policy retained as inflation projection remains under control and risks balanced. The Monetary Policy Committee maintained a neutral policy stance, retained its inflation projection and kept its annual Gross Value Added forecast unchanged while noting major economic developments and reform measures such as GST, bank recapitalisation and improved ease of doing business; the Government took note of the MPC statement.