AFTER AN extended period of holding the policy rate at 1.50 per cent, the Monetary Policy Committee (MPC) decided in December 2018 to raise the policy rate to 1.75 per cent. At the following meeting in February 2019, the committee voted to maintain the policy.

GLOBAL ECONOMY in 2019 faces daunting challenges on multiple fronts. On the one hand, world economic growth is poised to decelerate as support from fiscal stimulus in the US such as tax cut and increased government spending fades.