Monday, January 10, 2011

Central Bank of Sri Lanka Cut the Repo Rate 25bps to 7.00%

The Central Bank of Sri Lanka cut the repurchase rate 25 basis points to 7.00%, and cut the reverse repurchase rate 50 basis points to 8.50%. The move was taken in order to help boost post-war economic activity in the island nation. The Bank noted that while inflation has approached 7%, the drivers of inflation are currently primarily food related, due to weather and supply chain disruptions. In explaining its decision, the Bank noted these factors are likely to have only a "transient effect on domestic inflation".

www.CentralBankNews.info

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