Having considered in detail all the recent economic data and other developments impacting on inflation, the MPC remains concerned about the outlook for inflation and is of the view that the risks to the outlook are still on the upside. Accordingly the MPC has decided that a further upward adjustment in the repo rate is appropriate at this juncture. The repo rate is therefore increased by 50 basis points to 8.5 per cent per annum with effect from Friday, 13 October 2006. The Monetary Policy Committee will continue to monitor all economic, financial and other relevant developments and stands ready to act in order to ensure that the monetary policy stance remains consistent with achieving the inflation target.