Sri Lanka freezes rates; sees deposit and lending rates easing

Sri Lanka’s central bank says monetary board was of the view that current monetary policy stance is appropriate
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First Published: Tue, Feb 12 2013. 09 28 AM IST
The central bank said deposit and lending rates would in forthcoming ensuing weeks in line with its 25 basis point policy rate cut in December—stimulating private sector activity. Photo: Reuters
The central bank said deposit and lending rates would in forthcoming ensuing weeks in line with its 25 basis point policy rate cut in December—stimulating private sector activity. Photo: Reuters
Colombo: Sri Lanka’s central bank kept policy rates unchanged on Tuesday, as expected, to support faltering economic growth as it expected inflation to ease from March onwards, with a subsequent fall in deposit and lending rates in the near future.
“The Monetary Board was of the view that current monetary policy stance is appropriate,” the central bank said in a statement.
The bank said deposit and lending rates would in forthcoming ensuing weeks in line with its 25 basis point policy rate cut in December—stimulating private sector activity.
The bank left the repurchase rate and the reverse repurchase rate at 7.50% and 9.50% respectively. It also kept the commercial banks’ Statutory Reserve Ratio steady at 8%.
A Reuters poll forecast that both rates would remain unchanged from these levels, their highest in three years.
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First Published: Tue, Feb 12 2013. 09 28 AM IST
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