The Monetary Board raised short term interest rates by 25 basis points for May and opted to pursue open market operations more aggressively to curb spiralling inflation. The Monetary Board raised short term interest rates by 25 basis points for May and opted to pursue open market operations more aggressively to curb spiralling inflation. The Central Bank following the monetary board’s Thursday evening monthly meeting said its overnight repurchase (repo) would move up to 7.75 percent and its reverse repurchase (reverse repo) rates notches up to 9.25 percent.
Financial markets were anticipating a 100 basis point rate hike, given that secondary market interest rates are around a 100 basis points higher than the primary rates.
