The Board has recognised the necessity to continue the accommodative monetary policy stance, particularly as market lending rates are yet to reflect the full passthrough of policy easing measures implemented thus far.

The Board has also decided to adopt targeted measures to reduce specific interest rates that it considered to be excessive, which would help marginal borrowers.

The Board anticipates a further reduction in overall market lending rates, thereby encouraging borrowing for productive economic activity and reinforcing support for COVID-19 hit businesses as well as the broader economy, given the conditions of subdued inflation.

The release of the next regular statement on monetary policy will be on 08 October 2020.

Policy rates and SRR unchanged.

Standing Deposit Facility Rate (SDFR) – 4.50%
Standing Lending Facility Rate (SLFR) – 5.50%
Bank Rate – 8.50%
Statutory Reserve Ratio (SRR) – 2.00%

(LBO)