COLOMBO: Sri Lanka's key interest rates will remain steady for the next 2-3 months, Treasury Secretary P.B. Jayasundera said on Monday, as the country's banking sector is facing poor private sector credit growth despite multi-year low monetary policy rates.
"No adjustment will take place in the next 2-3 months," Jayasundera told Reuters when asked if the monetary authorities are considering any further downward adjustments to the interest rates to boost faltering credit and economic growth.
The central bank maintained a dovish monetary policy since December 2012. It cut both the repurchase rate and the reverse repurchase rate by 125 basis points (bps) each in the 11 months between December 2012 and October 2013 before.
In January, the central bank reduced reverse repurchase rate by a further 50 bps. Both key rates are at their multi-year low.
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