Treasury Secretary said benchmark interest rates will remain unchanged for the rest of the year despite a rise in inflation

Treasury Secretary said benchmark interest rates will remain unchanged for the rest of the year despite a rise in inflation.
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Treasury Secretary said benchmark interest rates will remain unchanged for the rest of the year despite a rise in inflation. Dr. P. B. Jayasundera told LBR that the current upward trend in inflation is temporary and should change early next year.
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The Treasury Secretary is one of five members of the Monetary Board chaired by the Central Bank Governor.


Dr. Jayasundera told LBR that he expects the current upward trend in inflation to ease by next year when the maha rice crop comes in.

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Inflation has been rising at over 1 percent a month according to the Sri Lanka Consumer Price Index.

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Bond dealers expect benchmark interest rates of the Central Bank to react to a sharp change in inflation.

Otherwise savers get negative returns.

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A bond dealer told LBR it would be hard for the Central Bank to ignore the rising inflation for much longer.

Bond yields however have however fallen over the past few months as state banks and pension funds that dominate the primary auctions submitted low bids.

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-LBR Newsdesk: LBOEmail@vanguardlanka.com

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