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Sri Lanka Reduces Interest Rates for the First Time in Three Years as Inflation Cools

Image by Gerd Altmann from Pixabay

Sri Lanka unexpectedly cut its benchmark rate for the first time in nearly three years with the central bank targeting inflation easing to single-digits earlier, giving room to support the nation’s economic recovery that’s gotten a lift from bailout funds.

The Central Bank of Sri Lanka lowered the standing lending facility rate to 14% from 16.5%, according to a statement on its website on Thursday. None of the seven economists surveyed by Bloomberg had expected the move, with all predicting the rate to be kept unchanged.

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