Sri Lankan Monetary Policy Left Unchanged

September 18, 2012

The Monetary Board at the Central Bank of Sri Lanka left its repo and reverse repo rates at 7.75% and 9.75%, respectively. Rate hikes of 50 basis points last February and another 25 bps in April have indeed produced the desired result of cooling down the excessive growth of money and credit, and a statement released by authorities today described the present policy stance as “appropriate.”  A supply-side price shock in June and July started to unwind in August, and economic growth has been ample.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.


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