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.

The Monetary Policy Committee (MPC) is chaired by the Deputy Governor in charge of Price Stability and comprises of the following members:

Chairperson
    Deputy Governor responsible for Price Stability

Members

  • Deputy Governor/s
  • Assistant Governor/s responsible for Price Stability
  • Director of Economic Research
  • Additional Director of Economic Research responsible for Money and Banking
  • Director, International Operations
  • Director, Domestic Operations
  • Director, Statistics

Secretary to the MPC

  • The Deputy Director of Economic Research responsible for Money and Banking (Alternate, 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 Governor and 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 Governor and 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.