Sri Lankan Monetary Policy Left Unchanged
April 16, 2013
The Monetary Board of the Central Bank of Sri Lanka retained a 7.5% repo rate and a 9.5% reverse repo rate but hinted of possible further easing later this year.
Monetary policy measures taken so far indicate that expected results are being realised, providing reasonable stimulus for a higher economic growth. At the same time, further deceleration of demand driven inflation on a sustainable basis would provide space for further easing of monetary policy.
A statement called the current rate levels “appropriate” and observed slower domestic credit growth, a healthier current account, and significant recent deceleration of total and core CPI inflation.
Three rate changes were engineered in 2012 but none so far in 2012. Interest rates were lifted by 25 basis points in February and April last year and more recently cut by 25 basis points in December.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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