Reply To:
Name - Reply Comment
Last Updated : 2024-03-29 11:12:00
The Central Bank (CB) has removed the maximum acceptable rate (364-day T-bills) at the T-bill auction after one year, as it was not successful in attracting bids for the auction, due to this restriction.
“The possible subscription of T-bills going forward with this removal, would likely restrict the excessive money printing in our view, which otherwise contributed largely towards growing inflation, forex depletion and reserve losses,” National Lanka Equities said in a brief research note, yesterday.
“The interest rates of the country are likely to pick up as it was visible when looking at the AWPLR, which already increased by 60-74bps to 6.4 percent since the tightening of monetary policy in August 2021,” the research note said.
“The real interest rates however could remain less attractive in our view, despite rising interest rates, with likely increase in inflation (due to demand and possible supply shortages) offsetting the real returns. Equity markets should thus remain positive in our view, with returns still remaining higher than the real interest rates,” it added.
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
Though the Government imposed VAT (Value Added Tax) on vegetables and other e
Saving energy has become more of a responsibility than a habit in today’s c
In the coming days, Muslims across the world will welcome the Holy Month of R
As of February 2024, Sri Lanka lost another 38 elephants as a result of the H
28 Mar 2024