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 Year-on Year Inflation Rises to 5.9
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Posted - 05 Sep 2013 :  21:15:13  Show Profile Send Momodou a Private Message
Year-on Year Inflation Rises to 5.9

By Suwaibou Touray

Foroyaa: Published on Thursday, 05 September 2013

The Monetary Policy Committee of the Central Bank of the Gambia issued a statement on Friday August 31, 2013 on their meeting Chaired by the Governor, Mr. Amadou Colley to discuss recent economic developments and their implications for monetary policy management, as well as review the Central Bank of the Gambia’s policy rate.

According to the Committee, it discussed developments in the real sector and observed that growth prospects for the economy remain stable, underpinned by the expected recovery in Agriculture and strong performance in the tourism sector. The Committee noted that following the modest recovery in 2012 from the 2011 drought, weaknesses in the balance of payments have remained leading to depreciation of the Dalasi and rising inflationary pressures.
According to the Central Bank monetary Committee, the year-on year inflation rose from 4.4 percent in July 2012 to 5.9 in July 2013 partly reflecting the depreciation of the Dalasi and the increase in global oil prices. “Although the Committee noted the Government’s commitment to continue prudent fiscal management and the implementation of the new revenue enhancing measures, the larger-than budgeted fiscal deficit has affected progress toward fiscal consolidation and contributed to the widening of the current account deficit,” Said Governor Colley while reading the statement of the Monetary Policy Committee of the Gambia Central Bank.

Govertnor Colley stated that as a result, the Committee was of the view that fiscal adjustment is essential to achieve debt sustainability and eventually reduce the domestic debt burden. According to the statement, the Committee also noted the rising trend in domestic interest rates reflecting the tightening monetary policy stance which is needed to stabilize the Dalasi.
“The yield on the 91-day Treasury bills rose from 10.84 percent in June 2013 to 12.37 percent in August 2013 whilst the 182-day bill also rose to 13.56 percent from 13.44 percent.
The yield on the one year bill increased from 14.54 percent to 15.83 percent,” said Governor Colley. In assessing the outlook for inflation, Colley said the Committee noted that the Dalasi remains under pressure and poses upside risk to inflation in the short term. However, he said the Committee was of the considered view that rising interest rates, supportive fiscal policy and rebound in agriculture would dampen inflationary pressures in the medium- term.
In light of the above, the Monetary Policy Committee decided to increase the rediscount Rate from 18.0 percent to 20.0 percent.
The MPC would also continue to monitor developments in the economy and respond appropriately to restore price stability.

Source: Foroyaa

A clear conscience fears no accusation - proverb from Sierra Leone


12242 Posts

Posted - 06 Sep 2013 :  12:34:20  Show Profile Send toubab1020 a Private Message
Effect of inflation on the live of real ordinary Gambians,this from The Point:
Snippet explains in a few words:

"At the end of the day, the monthly salary doesn’t last even eight days. What happens next is for him to depend on the goodwill of the grocer to tide over the rest of the month.This is, no doubt, a miserable way to live.
Interestingly, when things continue like this way, ordinary people who are known for honesty are tempted to do unimaginable things just to get by, thus engaging in corruption."

A serious matter

The Point: Published on Thursday, September 05, 2013

Many people find their monthly spending rising on a daily basis. Just go round to find out the prices of some of the necessities of life, and one would realize that many families are already struggling under the unfortunate pressure of rising food prices and cost of other products.

Water, electricity, school fees, feeding, travel payments among others also threaten to tip up household budget into the red. An average family’s spending monthly for essentials is roughly D2000.

There are reports indicating that there are people receiving a minimum monthly salary of D850. This can hardly earn a bag of rice nowadays.

Not to talk of the income of the pensioner population, which is quite modest. They are much more affected by the rising cost of living.

That being the case, many would expect employers to give a lot of thought to the matter of salary increase.

Workers pay packets no longer match the rising prices of basic commodities.

Workers, who live on a fixed income, are usually worst off when prices go up, especially so when they have no other source of income. As their income falls far short of their expenditure, they tend to live by their wits, or lose interest in their work. As a result, efficiency suffers.

What most workers take home nowadays is not just enough to make ends meet. Just imagine a family man that earns two thousand dalasis a month. If he has to spend say seven hundred on rent, three hundred on utilities, then he is left with just about one thousand. Out of this, he has to take care of feeding and other miscellaneous expenses.

At the end of the day, the monthly salary doesn’t last even eight days. What happens next is for him to depend on the goodwill of the grocer to tide over the rest of the month.This is, no doubt, a miserable way to live.

Workers should be made to be able to pay their rent, feed their families, take care of, if not all, but at least half of the needs of the family, so as to maintain effective and efficient performance in their various offices - as better services will yield better results.

"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.

Edited by - toubab1020 on 06 Sep 2013 12:35:04
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