Government has noted the reduction in repo rate from 5.40 percent to 5.15 percent announced by the Monetary Policy Committee (MPC) and believes that this will complement the recent measures taken by government to accelerate growth.

Government has also taken note of the revised growth projections of the MPC at 6.1 percent for 2019-20 along with growth projections made by other bodies including the IMF, ADB etc.

Government has further taken note of higher projection of headline inflation by MPC for 2019-20, which is within the band of 3-4 percent and well within the target range.

Repo rate reduction complements government growth measures and MPC growth and inflation projections remain within target band. Reduction in the repo rate by the Monetary Policy Committee is recognised as a monetary policy action to support economic growth, complementing government measures; the MPC's revised growth projection and a higher headline inflation projection are noted, with inflation remaining within the target band.