Central Bank of Sri Lanka Keeps Monetary Policy Stance Unchanged
November 29, 2016
The Standing Deposit Facility Rate was kept at 7.0%, and the Standing Lending Facility Rate remains at 8.5%. Each had been raised twice earlier this year in February and July. Those moves and a 150-basis point hike of reserve requirements last December represent a trend reversal after four 50-basis point cuts between October 2012 and April 2015. A released statement calls the current stance appropriate, predicting that inflation will remain in middle single digits. Two trends to watch are money growth of 18.4% as of September and the potential vulnerability that the rupee shares with other emerging market currencies in the wake of Donald Trump’s election as U.S. president.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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