Friday, July 8, 2011

Sri Lanka Central Bank Holds Interest Rate at 7.00%

The Central Bank of Sri Lanka held its benchmark repurchase rate steady at 7.00%, and also maintained the reverse repurchase rate at 8.50%, and the reserve ratio at 8%.  The Bank said: "Having taken into consideration the continued decline in headline inflation as well as other macroeconomic developments, the Monetary Board decided to maintain the Bank's policy interest rates at their current levels,".

Sri Lanka's central bank also held its key monetary policy rates unchanged at its June meeting this year.  Sri Lanka reported an annual headline inflation rate of 7.1% in June, down slightly from 8.2% in May.  The Bank also noted that the year to date average broad money growth in May was 17.9%, which was faster than expected, driven by strong private credit growth.


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