Central Bank Holds Interest Rates Steady
Policymakers cite persistent services inflation as the main reason for keeping borrowing costs unchanged for a third consecutive meeting.
The central bank voted unanimously to hold its benchmark interest rate at 3.75%, citing persistent inflation in the services sector as justification for continued caution.
Governor noted that while headline inflation has retreated to near-target levels, underlying price pressures remain elevated and wage growth has not yet cooled sufficiently to warrant easing.
Markets had priced in a 40% probability of a cut ahead of the decision. The next policy meeting is scheduled for late June, when updated growth and inflation forecasts will be available.
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