Daily FT

CBSL gives lower interest rate boost to economy

Cuts policy rates by 250 basis points in first ever downward revision in nearly 3 years

Says inflation projected to reach single digit levels earlier than expected by 3Q Stresses downward adjustment in market interest rates will support credit to private sector; urges financial institutions to comply Says domestic economic activity is expected to rebound gradually from late 2023 Points to external sector beginning to demonstrate improved performance Recommends to Govt. to consider phasing out remaining restrictions on most items of merchandise imports

Citing six compelling factors, the Central Bank yesterday announced a sharp 250 basis points cut in policy rates, first time in nearly 3 years and signalled financial institutions to follow suit.

The decision to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate ( SLFR) of the Central Bank by 250 basis points to 13.00% and 14.00%, respectively, was by the Monetary Board of CBSL at its meeting on Wednesday. Policy rates were last revised in July 2020.

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2023-06-02T07:00:00.0000000Z

2023-06-02T07:00:00.0000000Z

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