MPC holds, signals eventual recalibration

MPC’s Third bi-monthly Monetary Policy Review: 2026-27

The MPC unanimously voted to keep the policy rate unchanged. Inflation projections were revised lower, reflecting a more benign near-term inflation outlook, while the policy statement conveyed increased confidence in the growth trajectory. The commentary also signaled the possibility of future policy recalibration as inflation normalizes from current benign levels and is expected to stabilize after peaking at around 6% in Q3, indicating a gradually evolving policy stance.