Interest rates unchanged after CB’s Monetary Board meetingNewsThe Central Bank of Sri Lanka has left policy interest rates at their current levels after a meeting on Monday by the Monetary Policy Board. Further, the Board noted the space created by past monetary policy easing measures and the decline in the risk premia attached to government securities for further downward adjustment in market lending interest rates. The Board underscored that the envisaged benefit of further reduction in market lending interest rates needs to be adequately and swiftly passed on to the businesses and individuals by financial institutions. Further decline in market lending interest rates is expected in the period aheadMarket interest rates continued to adjust downwards in line with eased monetary policy and administrative measures taken to reduce overall market lending interest rates. The Monetary Policy Board is of the view that there is further space for market interest rates, especially the lending interest rates and yields on government securities to decline in the period ahead, in line with the reduction in policy interest rates effected in the recent past.

Source: Sunday Times January 23, 2024 19:08 UTC