Monetary policy stance maintained

BANK of Papua New Guinea maintained a neutral monetary policy stance by keeping the monthly policy Kina Facility rate at 6.25 per cent throughout January to September.
The bank in its monetary policy statement highlighted that the external sector continued to improve in the first half of the year. There was a higher surplus in the current account, more than offsetting a deficit in the capital and financial account, resulting in an overall balance of payments surplus of K98.7 million during that period.
“This led to an increase in foreign exchange inflows and higher mining and petroleum taxes,” the bank said.
“Together with an increase in domestic tax and non-tax revenue from improved compliance, Government revenue was on par with the budget or better and enabled the Government to maintain its priority expenditures in education, health and other areas including Apec-related activities.”