as MPR maintained at 20% Inflation drops 0.51%

Bank of Sierra Leone’s Monetary Policy Committee (MPC) met on Thursday 9th February 2012 to discuss what it termed as “recent developments” in various sectors of the economy along with their “implications for monetary policy management” and to review the Bank of Sierra Leone Monetary Policy Rate (MPR).
After deliberations the MPC maintained Sierra Leone’s MPR at 20%.
The MPC said it looked at “recent developments in prices” and noted the “decline in national consumer price index” and the downward pull in inflation from 17.15 % (year-on-year) in November 2011 to 16.64 percent in December 2011” or 0.51% drop, which it attributed to “relative stability of the exchange rate”.
The MPC also said it discussed “developments in real sector activities” and noted that the December 2011 Business Confidence Report shows “continuous improvement” in confidence during the last three quarters of 2011.
This the MPC said “is underpinned by observed upward trend in the country’s macroeconomic and governance indicators” adding that it “is consistent with the Bank’s stance on ensuring and sustaining strong macroeconomic performance”.
Bank of Sierra Leone’s monetary policy stance on the liquidity condition of the money market in Q4 of 2011 was also looked at. The MPC however noted that “action should be taken” to address the growth in “monetary aggregates by intensifying monetary operations in order to contain inflationary pressures and sustain the reduction in inflation”.
Effective Monday 13th February, 2012 and until the MPC meets again, Sierra Leone’s Money Market is guided by the following rates; Monetary Policy Rate is maintained at 20%,Reverse Repo Rate is 22% (200 basis point above the MPR);Rediscount Rate is 24% (400 basis points above the MPR) and Lombard Facility Rate is 30% (1000 basis points above the MPR).