CB keeps September policy rates on hold

18 September 2013 10:16 am - 0     - {{hitsCtrl.values.hits}}

A A A

Sri Lanka’s monetary board yesterday decided to keep the key policy rates on hold for September, unchanged during the last four months. Hence both the repurchase and the reverse repurchase rate will be maintained at current levels of 7.00 percent and 9.00 percent respectively.

Speaking on the monetary stance, the Central Bank Governor Ajith Nivard Cabraal told Bloomberg TV that the strong growth in the economy had prompted them to keep the policy rates steady.

“We have seen some strong growth coming back in to the economy perhaps because of the moves we made in the past prompting us to keep the rates steady and to ensure that the momentum is allowed to take place without any further changes right now,” he said.

However Cabraal told in July that the CB might cut short-term interest rates again in September or October if inflation continues to fall as expected.

“We are seeing funds flowing. The recent bond issue done by the National Savings Bank is a good indicator of the interest people have in Sri Lanka. So this has prompted us to maintain rates and probably watch for the next month or so to see whether any further impetus needs to achieve a growth of 7.5 percent. But right now we believe we are on track to achieve that,” he further said.

Sri Lanka’s economy grew by 6.8 percent in 2Q accelerating from 6.0 percent growth in 1Q. Inflation has also hovered around the mid-single digit levels (6.3 percent in August) during the recent past, easing from 9.8 percent in February this year.

The monetary board releasing the September monetary policy review attributed some of the recent volatility in the domestic exchange rate market to the likely tapering of stimulus in US, which affected emerging market currencies the most.

“We are watching the rupee very closely and the growth stimulus while maintaining inflation,” Cabraal said.

The CB further expects the recently issued US $ 750 million NSB bond would help support the savings –investment gap and targets a gross official reserve of Rs.7.0 billion by the end of this year.
See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




“Workers who fainted had water sprinkled on their faces and had to work again”

Health authorities believe the first reported Covid-19 infected worker from t

“Social media ruined us” - husband of Minuwangoda Brandix factory worker

The Minuwangoda Brandix factory worker who first tested positive for Covid-19

Last rites far from home

The body of the Sri Lankan migrant worker Bandu who died of coronavirus in Du

Doctors blame newborn for gash on her face

A baby born on September 21 at the Wathupitiwala Base Hospital in Gampaha has

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.