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THE Central Bank's Monetary Policy Committee (MPC) has agreed to maintain the repo rate at 3.50 per cent, a press release from the Bank confirmed on June 27.

In what is the first publicised policy directive under the stewardship of new Central Bank (CB) Governor Larry Howai, the Bank said the decision to maintain the repo rate at 3.50 per cent was done taking into consideration several global factors including the recent escalation of tensions in the Middle East, as well as local factors including performance of the local energy and non-energy sectors.

The repo or repurchase rate is the rate of interest at which commercial banks can borrow funds overnight from the Central Bank.