empty
 
 

2017.06.2301:23:00UTC+00Sri Lanka Keeps Rates On Hold

Sri Lanka's central bank on Friday decided to leave its key rates unchanged as policymakers viewed the current monetary policy stance as appropriate.

The monetary board of the Central Bank of Sri Lanka maintained the standing deposit facility rate at 7.25 percent and the standing lending facility rate at 8.75 percent.

"The decision of the Monetary Board is consistent with the objective of maintaining inflation at mid-single digit levels over the medium term and thereby facilitating a sustainable growth trajectory," the bank said in a statement.

Policymakers observed that the economic growth slowed to 3.8 percent in the first quarter as unfavorable weather conditions weighed on the farm sector. The economy is forecast to recover during the second half of the year.

At the same time, inflation moderated in April and May. It is projected to moderate to mid-single digits by the end of 2017, and stabilize thereafter.

Krystal Tan, an economist at Capital Economics expects policy rates to rise by a more gradual 50 basis point by end-2017. Before today's meeting, the consensus was pencilling in one more 25 basis point hike this year.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback