Reply To:
Name - Reply Comment
Last Updated : 2024-04-23 22:35:00
Sri Lanka has the highest real interest rate in South Asia at 6.2 percent, Bloomberg said today.
It said real interest rates in South Asia are among the highest in the world, raising the prospect of more dovish monetary policy in the region.
Sri Lanka, Pakistan and India rank in the top five of the world’s major economies with the highest inflation-adjusted interest rates.
“While negative real rates might be considered a sign of financial instability, a high inflation-adjusted benchmark interest rate is, on balance, a reason for central bankers to consider a looser policy stance,” Bloomberg said.
It said the political crisis in Sri Lanka, which has the highest real interest rate by far at 6.2 percent, forced central bankers there to turn their focus more to sluggish economic growth.
“The central bank kept the benchmark rate unchanged at the end of last year after one cut and one hike earlier in 2018,” it said.
Indian Finance Minister Arun Jaitley has already complained about high real rates, and economists are starting to price in the possibility of a rate cut as early as next month.
“Egypt could be headed for an interest rate cut if inflation remains low. Pakistan took aggressive interest-rate action last year to curb a balance-of-payments crisis and may have more structural changes to make. In Turkey, things are more complicated as officials must weigh a need to defend the still-struggling lira versus the temptation to juice an economy that’s saddled with crippled growth,” Bloomberg said.
BUSHEL Monday, 21 January 2019 06:14 PM
Meaning of DOVISH is favoring diplomacy rather than the use or display of force to achieve foreign-policy goals.
Saranga Monday, 21 January 2019 06:18 PM
Awesome for Financial City
Joseph Rajah Monday, 21 January 2019 06:41 PM
Sri Lankan’s don’t care about economy they care only racism and power. Greedy for power is nurtured by the people and monks.
Lahiru Tuesday, 22 January 2019 02:20 PM
People like you're and racist comments like yours make them to act the way they do. Just try not to be an a
gem Monday, 21 January 2019 07:37 PM
The problem is LKR has depreciated 19% last year.
Devalei Kudda Monday, 21 January 2019 10:59 PM
Our highest "interest" is in kuddu business!
Arnold Tuesday, 22 January 2019 07:19 AM
This is what the West wants. They jack up the interest rate sky high, so that the rich (less than 5% of the population) deposit their money in FDs and do nothing, and the hard working entrepreneurs are trapped and lose all their assets and become poor. In other worlds rich become richer and the poor become poorer.
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
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul
A recent post on social media revealed that three purple-faced langurs near t