Sri Lanka’s Central Bank leaves it policy rates intact

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Sri Lanka’s Central Bank opted not to tinker with its policy rates ahead of a crucial Presidential poll on Thursday. Sri Lanka’s Central Bank opted not to tinker with its policy rates ahead of a crucial Presidential poll on Thursday. The repurchase rate, which drains money from the banking system, stands at 8.50 percent and the reverse repurchase rate remains at 10.00 percent, the Central Bank said in a statement.

Benchmark rates were last revised upwards in September by 25 basis points.

Policymakers have raised interest rates three times this year to reign in galloping inflation spurred on by higher global oil prices

Most analysts were not expecting the bank to change its policy rates. But a sudden 10-15 basis points jump in treasury bill rates on Monday, led to speculation that there could be a hike.

Market players feel rates should go up by 25-50 basis points, due to excess liquidity in the system.

More to follow………..