RTTNews - Thursday, the Central Bank of Sri Lanka decided to lower the reverse repurchase rate and removed the penal rate of interest charged on the Central Bank's reverse repurchase transactions. The Monetary Board reduced the reverse repurchase rate by 25 basis points to 11.5%.
The central bank also removed restrictions on the number of times that a participating institution can access the reverse repurchase standing facility of the central bank at the reverse repurchase rate and removed the restrictions on the maximum amount that a participating institution can place with the central bank under the repurchase standing facility.
Further, the central bank said it will conduct monetary policy operations to maintain inter-bank interest rates stable within the corridor formed by the Repurchase and Reverse Repurchase rates.
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