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Monetary Policy Technical Committee

Mandate

The MPTC is established by the Bank’s Board of Directors with the responsibility to consider, advise and decide on issues primarily relating to the formulation and implementation of monetary policy within the general guidelines determined by the Bank’s Board.

The MPTC shall report on its activities to the Board of Directors at least on a quarterly basis.

Composition

The Chairperson shall be the First Deputy Governor and other representatives of the Committee shall be the Second Deputy Governor and the Head or a designated representative from the following Divisions:

  • Banking Services Division (BSD)
  • Financial Inclusion and Market Conduct Division (FIMCD)
  • Financial Markets Division (FMD)
  • Financial Surveillance Division (FSD)
  • Research and Statistics Division (RSD)
  • FMD shall act as Secretariat to the MPTC.

    Functions

    The primary functions of the MPTC shall be to:

    -provide a forum for the exchange of information on, and analysis of, current

    -overall macroeconomic developments in the country and abroad;

    -developments in key financial indicators.

    -provide a forum for the consideration of research and analysis relevant to the formulation and implementation of monetary policy.

    -evaluate developments and trends in overall liquidity of the financial system.

    -initiate the use of instruments under the control of the Bank in line with decisions adopted by the Board.

    The decisions will be guided by the analysis and policy recommendations of FMD and RSD as well as any other proposal brought forth by an MPTC member.

    Meetings

    As the Secretariat of the committee, FMD is responsible for setting up the meetings, subject to the approval of the Chairperson. Any other member may also request to have a non-scheduled MPTC meeting if approved by the Chairperson.

    The MPTC shall have a main meeting at least once a month to coincide with the start of a new Minimum Reserve Requirement (MRR) maintenance period. In the event that the main monthly meeting cannot be conducted on the planned date the meeting should be rescheduled within the next 48 hours.

    Minutes of all MPTC meetings, which record all formal decisions, and the views of all members shall be taken and forwarded via email to all members within 10 working days following the meeting.

    If the First Deputy Governor is not present or acting as Chief Executive Officer of the Bank, as prescribed by the CBS Act 2004, as amended, he or she shall nominate a member to chair the meeting.

    Decision Making

    During a sitting of the Committee, each member shall express their views based on the submitted information or proposal, as the case may be.

    Where in place of a meeting, members’ views are sought via email a majority of the members in office shall express their views.

    The Committee shall consider each view in turn, and the view preferred by a majority of the members shall prevail and be adopted as the decision of the Committee, provided that the Chairperson is in support of this view. If the Chairperson disagrees with the view of the majority or if there is no majority view he/she shall have the authority to take a decision based on his/her own view or the view that he/she supports.

    Where the Chairperson takes a decision in accordance with the above, he/she shall, as soon as possible inform the Board of Directors of the exercise of his/her authority under that section and his/her reasons for doing so.