Bitter policy dose after vaccines View(s):A few weeks ago, the Central Bank of Sri Lanka decided to reverse its monetary policy stance that it had been implementing over the past one and half years; instead of “loosening” monetary policy, now it is one of “tightening”. Whatever the decisions of the European Central Bank may be, the EU will have to respond to the changing monetary policy stance of the US, if it is likely to begin the monetary policy tapering towards the end of the year. What does these monetary policy decisions mean as their policy objectives? The vaccination campaign coupled with the government spending supported by monetary policy stimulus, have contributed to bounce back the global economy. It is the key for Sri Lanka to ensure long-term growth beyond recovery, leaving the monetary policy to play its part.

Source: Sunday Times September 12, 2021 00:33 UTC