|
At
the rate inflation and connected macro economic issues
get out of hand, banking circles are buzz with what
could be a thorny poser to regulators is could Central
Bank monetary policy get any tighter?
Last week following the July monetary policy review,
the Central Bank according to analysts perhaps exposed
it was running out of steam.
In its own words, the Central Bank said: “In view
of the increase in the average core inflation, and the
likelihood of its further increase due to second round
impacts of the increases in prices of non core items
and the need for stemming the demand pressures to contain
inflation, the Central Bank has decided to further tighten
its monetary policy stance by restraining the expansion
in reserve money.”
Accordingly, the Bank has revised downwards its reserve
money targets for the third quarter of the year over
and above the already tightened reserve money targets
announced in April 2008.
Full
Story....
|
