Sri Lankan Repo Rate Kept at 7.0% after Being Cut Last Month

June 7, 2013

The repo and reverse repo rates were previously sliced by 25 basis points last December and by 50 bps on May 10.  They currently stand at 7.0% and 9.0%, respectively. May’s reduction was set against the backdrop of slower and slower-than-anticipated first-quarter growth, a stronger rupee, satisfactory external balances, and decelerations of core inflation and private sector credit expansion.  A statement released by the Central Bank of Sri Lanka Board today after this month’s meeting, which called the new status quo appropriate, observed that market rates had adjusted amply to the central bank rate cuts in May and that core inflation and money and credit growth have continued to slow.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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