RTTNews - The Central Bank of Sri Lanka decided to lower the key interest rates by 50 basis points on Tuesday.
In its latest monetary policy meeting, the central bank cut the reverse repurchase rate to 11% and the repurchase rate to 8.5%, with immediate effect.
The central bank expects the annual inflation rate to pick up gradually during the second half of the year from its current low levels. Further, it expects the inflation to remain in single digit in the current year as well as the next year.
The central bank noted that financial markets are yet to fully adjust with the policy measures. The current reduction of the policy rates would assist to ease domestic credit market conditions and thereby bring down market interest rates, facilitating an increased flow of credit.
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