Central Bank of Sri Lanka
February 25, 2015
Sri Lankan central bank interest rates haven’t changed in slightly over a year. The Standing Lending Facility Rate has been at 8.0% since a 50-basis point cut in January 2014, and Standing Deposit Facility rate has been 6.5% since it was last reduced in October 2013. As inflation receded, both rates were cut by a half percentage point in December 2012, August 2013 and October 2013. A statement released today after the latest policy review projects lower CPI inflation in upcoming February data, greater external sector resilience in the future, and encouraging economic growth prospects. No forward guidance regarding timing and direction of the next policy moves are indicated, but the statement does not explicitly call the current stance “appropriate.”
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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