CBSI Maintains Accommodative Monetary Policy

The Central Bank of the Solomon Islands says it will maintain a moderate accommodative monetary policy position to allow for growth in the economy.

The statement was issued by the bank yesterday, while releasing its monetary policy stance for the second half of 2010.

It says inflation is low and is projected to remain so in the short term, while the level of foreign reserves is comfortable with no threat expected in the immediate future.

Meanwhile it says credit demand has remained low resulting in excess liquidity building up in the banking system.

It says in this moderate accommodative monetary position, CBSI, would like to see credit growth in the economic sectors that could lead to growth in the economy.

CBSI also vows to continue monitoring the economic conditions in the economy and will act to contain any pressure to inflation.