Central Bank Holds the Policy Rate at 14%

The policy rate was maintained at 14% per annum. Annual inflation slowed from 11.7% in March to 11.0% in April.

The policy rate was maintained at 14% per annum at the May policy meeting, while annual inflation slowed from 11.7% in March to 11.0% in April.

Core inflation was 12.9% in March, versus 13.8% at end-2022. The CBU retained an 8.5–9.5% year-end inflation forecast. Deposit and loan dollarization stood at 30.6% and 44.3%, respectively.

The hold preserved restrictive funding conditions, with inflation and dollarisation still central to banks' asset-liability management and foreign-exchange risk.

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