State Bank holds policy rate at 12.5% as inflation cools to 6.1%

The State Bank kept its benchmark policy rate unchanged at 12.5 per cent, a decision that matched the expectations of most analysts polled ahead of the announcement.

In its statement, the monetary policy committee pointed to headline inflation easing to 6.1 per cent, a build-up in foreign exchange reserves, and a current-account deficit that has narrowed for four consecutive months.

The committee said it would consider a gradual easing cycle from the third quarter if the disinflation trend holds and global commodity prices remain stable.