Papua New Guinea raises rates for first time since 2011
Rising inflation prompts first move in more than two years
The Bank of Papua New Guinea raised its policy rate by 25 basis points, to 3.25%, the first change in the benchmark rate since April 2020. The central bank last increased the rate in September 2011.
In its press statement, the central bank pointed to “a significant increase” in headline inflation which rose 6.9% year-on-year in the first quarter of 2022.
The central bank also tightened lenders’ reserve requirements, from 7% to 8%. The board said there was still enough liquidity in the banking
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