Rate Hike at Central Bank of Sri Lanka
January 20, 2022
The Central Bank of Sri Lanka‘s policy interest rate was also lifted today. An initial increase had been engineered last August of 50 basis points to 5.0%, and today’s move was also a half percentage point to 5.5%. There had been five cuts in 2020 totaling 250 basis points, so the rate remains 150 bps below its pre-pandemic 7.0% level. While rising inflation in 2021 was driven mostly by supply side factors, officials want to avoid a rise in price expectations and observe demand-side pressures starting to emerge.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
ShareThis
