Central Bank of Sri Lanka

May 11, 2018

The Standing Lending Facility Rate had been reduced 25 basis points in April to 8.5%, but today’s policy review held that rate as well as the 7.25% Standing Deposit Rate steady this time, declaring the current stance “suitable” in a released statement . The goal is for inflation to stabilize in the mid-single digits, that is around 4-6%, and that projected to happen later this year after a nearer term temporary uptick reflecting oil developments among other things. Core inflation is subdued, and measures of expected inflation have declined. Prior to last month’s rate cut, there had been tightenings implemented in February and July of 2016 and four reductions, each by 50 basis points, from October 2012 through April 2015.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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