The external current account recorded a surplus of US$ 133 million in August 2026 following four consecutive months of deficits. The surplus was supported by the lower trade deficit compared to recent months, reflecting lower import expenditure. The current account recorded a cumulative deficit of US$ 291 million during January-August 2026, reflecting pressures on the external sector stemming from the escalation of the Middle East conflict.

The Monetary Policy Board, at its meeting held yesterday, decided to maintain the Overnight Policy Rate (OPR) at the current level of 8.75%.  The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts. The Board paid particular attention to the effects of the proactive monetary policy tightening in May 2026 alongside other measures that had already materialised to a large extent. The Board also recognised the uncertainty arising from evolving geopolitical tensions in the Middle East and potential risks associated with El Niño conditions on the economy.