Monetary Policy Committee(MPC)

  • A primary function of the Central Bank, as stated in the Monetary Law Act, is the determination and implementation of monetary policy for the country. Over the years, the economy, and in particular the financial sector, has deepened and become more sophisticated.  Consequently, the Bank’s tasks in determining and implementing monetary policy have also increased in complexity. Hence, as a part of the Bank’s ongoing process of adapting itself to meet new challenges, and a step towards improving the transparency of the decision making process, a formal monetary policy committee (MPC) was established in early 2001, to study and make recommendations on monetary policy for the consideration of the Monetary Board.
  • In order to improve the operational efficiency of monetary management, the Monetary Board has approved of the establishment of the Monetary Policy Committee (MPC) to be chaired by the Deputy Governor in charge of Monetary Policy and include the following members:

a.       Deputy Governor responsible for Financial Stability

                        b.   Assistant  Governor responsible for Monetary Policy:

c.    Assistant  Governor  responsible for Financial Stability

d.   The Director of Economic Research

e.   The Additional Director of Economic Research responsible for Money and Banking

f.   Director, International Operations (alternate, Deputy Director, International Operations)

g.  Director, Domestic Operations (alternate, Deputy Director, Domestic Operations)

  • The Deputy Director, Economic Research responsible for Money and Banking  is the secretary to the MPC (alternate, Head of Division, Money and Banking).
  • The primary function of the MPC would be to forecast and evaluate emerging monetary and macro-economic developments and make recommendations on appropriate future directions of monetary policy for consideration by the Governor and the Monetary Board. The MPC would meet at regular intervals, at least once a month. At these meetings, members would consider reports prepared by the Economic Research Department and other departments on monetary, foreign exchange market and price developments, together with developments in the fiscal, external and real sectors, which would serve as the bases for the deliberations of MPC, in the formulation  of recommendation to the Governor and Monetary Board.