No Central Bank Rate Change in Sri Lanka
February 12, 2013
Sri Lankan central bank authorities have retained a 7.5% repo rate (and 9.5% reverse repo), just as they decided in January. The rates were cut by 25 basis points in December once progress had been observed in cutting non-oil import growth and domestic credit expansion. Those were the goals sought when central bank rates were raised earlier by 25 basis points each in February and April of last year. Private credit rose only half as much in the year to December and in the previous 12 months, but the current inflation rate of 9.8% continues to be excessive. Analysts do not anticipated a policy change in the very near term.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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