An optimistic John Mangudya has said the prevailing price stability will continue till the turn of the new year next year, the Daily News reports.
The Reserve Bank governor was speaking after a monetary policy committee (MPC) meeting as he was giving an economic update when he said:
The MPC expects price stability to continue prevailing in the economy during the last quarter of this year mainly on account of the improved operating business environment brought about by the foreign auction system.
With 16 auctions having been conducted to date, and a total amount of US$291 million having been allotted, the MPC is pleased that the auction has also managed to improve the much needed availability of foreign currency.
During the same update, Mangudya also said the government was going to extend additional funding of $2.5 billion to the local industry to increase productivity to add to the $18 billion that was announced when the lockdown started:
…The funds will be accessed by final beneficiaries through normal banking channels under an arrangement that is consistent with the conservative monetary targeting framework being pursued by the bank.
Accordingly, banks are encouraged to ensure that repayments by their customers from the existing financing facilities are used to augment the bank’s medium-term financing window.