Central Bank of Sri Lanka

25-Basis Point Cut in Sri Lankan Central Bank Policy Rates

April 3, 2020

The Monetary Board at the Central Bank of Sri Lanka held an emergency session today in which members agreed to cut the Standing Deposit Facility rate to 6.0% from 6.25% and the Standing Lending Facility rate also by 25 basis points to 7.0%. Just 18 days earlier also at an unscheduled meeting, these rates were […] More

Risk Back Off after California Declares State of Emergency

March 5, 2020

Yesterday’s U.S. stock market rally extended into Pacific Rim trading hours overnight, with markets advancing 2.1% in Hong Kong, 2.0% in China and New Zealand, 1.3% in South Korea, and 1.1% in Japan, Australia, and Taiwan. But the covid-19 virus continues to extend its tentacles, and investor fear abruptly overtook hope in Europe where equity […] More

Central Bank Rate Cuts in Ukraine and Sri Lanka

January 30, 2020

The National Bank of Ukraine statement stresses a strengthening currency and inflation that has dropped sharply and is now expected to hover below the 4-6% target band until late this year. The rate was cut 150 basis points to 11.0% today and previously had been reduced by 50 bps each in April, July and September […] More

Coronavirus Outbreak Tops Busy List of Developments for Markets to Process

January 30, 2020

Several central banks held their first policy reviews of 2020. Those in Chile and Great Britain left their interest rate structures unchanged at 1.75% and 0.75%, respectively. The National Bank of Ukraine implemented its sixth rate cut in nine months, a 150-basis point reduction to 11.0%. The Central Bank of Sri Lanka engineered its third […] More

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

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