Central Bank of Sri Lanka

Share Prices Firm but Dollar Softer

December 27, 2019

The dollar recorded overnight declines of 0.6% against sterling, 0.5% versus the Australian dollar and Swiss franc, 0.4% relative to the euro and kiwi, 0.3% against the loonie and 0.1% versus the yen and peso. Most stock markets firmed. In Japan and China whose markets remained open all week, by contrast, share prices fell 0.4% […] More

An Active Friday in the Market Caused by Breaking Geopolitical News

October 11, 2019

An Iranian oil tanker in the Red Sea was the object of rocket attacks and is spilling oil. The missiles are believed to have been fired by Saudi Arabia. WTI crude oil rose 1.6% in response. British Prime Minister Johnson and Irish PM Varadkar after bilateral talks said they could see a pathway to a […] More

Central Bank of Sri Lanka’s Interest Rates Cut by 50 Basis Points in Mostly Unexpected Move

August 23, 2019

Friday brought word of another central bank rate cut. This time it involved the Central Bank of Sri Lanka. The rate cut size was 50 basis points each to the key deposit rate (now 7.0%) and lending rate (now 8.0%). The cut follows a similarly sized reduction engineered in May, which together almost offset a […] More

Dollar Slightly Firmer as Markets Await Speeches from Powell and Other Central Bankers

August 23, 2019

The dollar climbed overnight by 0.4% against the Swiss franc and sterling and by 0.2% relative to the yen, euro and loonie. It’s unchanged on balance against the yuan but touched a new 11-year intra-day high of 7.0987 against the Chinese yuan. The peso and Australian dollar are unchanged against the greenback, while the kiwi […] More

Sri Lankan Interest Rates Cut

May 31, 2019

The Central Bank of Sri Lanka cut its interest rates by a half percentage point, citing the Easter terrorist attacks there, easier monetary policies elsewhere, downward rigidity in Sri Lankan market rates, slowing private sector credit expansion, a narrowed trade deficit, and subpar domestic growth. A recent uptick of inflation was dismissed as not being […] More

Financial Markets Feeling the Strain of A Breakdown in International Trade Relations

May 31, 2019

President Trump is imposing a tariff on all U.S. imports from Mexico in retaliation of that country’s failure to contain the flow of migrants crossing into the United States. China is ramping up its response to President Trump’s recent protectionist acts against Chinese exports and especially the action against Huawei. U.S.-EU trade talks also have […] More

Persistent Volatility as 2018 Winds Down

December 28, 2018

U.S. equities whip-sawed wildly in Thursday’s session, closing high. The upward direction carried into early Friday, with markets gaining 0.9% in Taiwan, 0.8% in India, 1.0% in Australia, 0.6% in South Korean, 0.4% in China and Hong Kong but dipping 0.3% in Japan. Markets in Europe are up so far 2.4% in Switzerland and between […] More

Intensifying Concern that Euro Area Is Drifting Into a Fresh Debt Crisis over Italy

October 2, 2018

A quote from European Commission President Jean-Claude Junker set the tone for trading today: “I would not wish that, after having really been able to cope with the Greek crisis, we’ll end up in the same crisis in Italy.” Ten-year sovereign debt yields, while dropping today by 3 basis points in France, Germany, The Netherlands, […] More

Central Bank of Sri Lanka

May 11, 2018

The Standing Lending Facility Rate had been reduced 25 basis points in April to 8.5%, but today’s policy review held that rate as well as the 7.25% Standing Deposit Rate steady this time, declaring the current stance “suitable” in a released statement . The goal is for inflation to stabilize in the mid-single digits, that […] More

Central Bank of Sri Lanka

April 4, 2018

The Standing Lending Facility Rate at the Central Bank of Sri Lanka has been cut 25 basis points to 8.50%. By keeping the Standing Deposit Facility rate unchanged at 7.25%, the range between them has narrowed as a result. According to a released statement, inflation has decelerated as a result of softer food prices, inflation […] More

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