INTRODUCTION AND BACKGROUND
1.1 This Statement provides an evaluation of the progress in the implementation of monetary policies enunciated in the previous Monetary Policy Statement of August 2020 and outlines the monetary policy measures to be pursued by the Bank in the next six months to buttress and sustain the obtaining price and exchange rate stability since the introduction of a monetary targeting framework and a functioning foreign exchange auction system. The measures contained in the Statement are also consistent with the objectives of the National Development Strategy 1 (NDS1).
1.2 The Statement comes at a time when the global economy is grappling with the debilitating effects of the Covid-19 pandemic which are causing incredible human and economic hardships across the country and around the world. These challenges have seen most central banks adopting monetary easing, by taking accommodative measures to keep their economies afloat. The Bank has also responded to the global and domestic economic conditions in a forward-looking manner to sustain the country’s productive capacity and fostering price, exchange rate and financial sector stability.