Reserve money targets being achieved

The Central Bank has published its quarterly reserve money targets for 2007. In addition, the Central Bank maintains a monthly indicative targeted path for reserve money to guide the monetary policy.

The target as at May 31, 2007 was Rs. 250.4 billion, whereas the realised reserve money as at that date was Rs. 246.2 billion.

This is an outcome of the maintenance of a tight monetary policy stance. Furthermore, it is now clear that the target of Rs. 250.4 billion set for June 2007 can be achieved comfortably. The achievement of reserve money targets will lead to the continuous deceleration of the growth in broad money and inflation.