cbn statement, 2011-09-19
The key concerns noted by the Committee were: 1. Continuing expansionary fiscal stance and high component of recurrent expenditure; 2. Liquidity surge expected from AMCON intervention, following conclusion of bank recapitalization; 3. Sharp rise in month-on-month headline inflation rate despite falling headline inflation rate on year-on-year basis; 4. Need to have positive real interest rates; and 5. Persisting demand pressure in the foreign exchange market, driven by significant liquidity injections and reflecting structural deficiencies that have perpetuated the import dependence of the economy.
Sentiment: neutral
Topic: mp_economic_activity