BusinessANALYSIS
Central bank holds rates, signals cut early next year
Inflation is falling faster than expected, but the bank wants “two more months of good news” before moving.
Key points
- Benchmark rate unchanged at 9.5%
- Inflation down to 6.1%, lowest in three years
- Governor hints at cut in the first quarter
The central bank kept its benchmark rate unchanged on Wednesday, as most economists had expected, but its statement was the most optimistic in more than a year.
Inflation fell to 6.1% last month, driven by cheaper food and a stable currency. The governor said the bank wanted to see “two more months of good news” before cutting.
For borrowers, that means mortgage and loan rates are unlikely to fall before the new year. Savers will continue to benefit from high deposit rates for now.