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25 percent. Sri Lanka opted to hike its key short term rates by 50 basis points, taking the repo rate up to 8.25 percent. The monetary board pushed up the repo rate, at which the Cnetral bank lends to the banking sector, to 8.
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25, after last raising it by 25 basis points in May.
The revere repo rate will move up to 9.
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75 percent.
Secondary market rates however remain over 50 basis points above the primary rates, while inflation also continues to edge up.
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The rate hike is expected to help curb largely fuel cost driven inflation, currently tipping 13 percent and to cut credit growth which is also a contributory to the rising cost of living.
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Watch out for more on the monetary policy on LBO.
-LBO Newsdesk: lboemail@vanguardlk.com