Monetary Policy Committees

 

Monetary Policy Committee (MPC)

A primary function of the Central Bank, as stated in the MLA, is the determination and implementation of monetary policy for the country. Over the years, the economy, and in particular the financial sector has deepened and become sophisticated along with the financial sector reforms and structural changes in the economy. Consequently, the Central Bank's tasks in determining and implementing monetary policy have also increased in complexity. Hence, as a part of the Bank's efforts to strengthen the monetary policy analysis and as a step towards improving the transparency of the decision making process, a formal monetary policy committee (MPC) was established in early 2001. Since November 2001 up until March 2020, the Deputy Governor responsible for Monetary Policy chaired the Monetary Policy Committee (MPC).

Effective April 2020, the Monetary Policy Committee (MPC) is chaired by the Governor and comprises of the following members:

Chairperson

    Governor

Members

    • Deputy Governor responsible for Monetary Policy (Deputy Chairperson of the MPC)
    • All other Deputy Governor/s
    • Assistant Governor/s in charge of Departments of Economic Research, Domestic Operations, International Operations and Statistics
    • Director of Economic Research
    • Director, Domestic Operations
    • Director, International Operations
    • Director, Statistics
    • Additional Director of Economic Research overseeing Money and Banking

Secretary to the MPC

    • Deputy Director of Economic Research overseeing Money and Banking (Alternate Secretary, Head of Division, Money and Banking)

The primary function of the MPC is to forecast and evaluate emerging monetary and macroeconomic developments and make recommendations on appropriate future directions of monetary policy for consideration by the Monetary Board.

The MPC meets at regular intervals, currently eight times per year. At these meetings, members consider reports prepared by the Economic Research Department and other departments on monetary, foreign exchange market and price developments, together with developments in the fiscal, external and real sectors, which would serve as the bases for the deliberations of the MPC, in the formulation of recommendations to the Monetary Board. At present, technical inputs provided by the Economic Research Department are based on comprehensive economic and monetary analyses including macroeconomic forecasts, particularly for inflation. 

Monetary Policy Consultative Committee (MPCC) 

The Monetary Policy Consultative Committee (MPCC) has been set up to obtain views of the stakeholders of the economy for monetary policy decision making. The committee consists of a cross section of stakeholders including eminent professionals, academics and the private sector personnel so that the Central Bank benefits by their expertise and experience in its monetary policy decision making process.