New CB Governor asks people to brace for more hardships; says economy can be “turned around” By Bandula Sirimanna Upward tax revisions; export promotion; curb money printing; reduce inflation; talks with IMF priority areas View(s): View(s):The newly appointed Central Bank Governor Nandalal Weerasinghe issued a strong new policy directive, saying the Central Bank (CB) would curb excessive money printing, reduce rampant inflation, reduce commercial borrowings and keep the runaway US dollar in check. At a media briefing late on Friday after a meeting of the Monetary Board, Governor Weerasinghe said the CB increased policy lending rates by 7 percent on Friday, the highest interest rate hike in recent times. Like a new broom that sweeps well, the Governor made the right choices saying the CB would be independent, transparent and be truthful to the people. At a meeting in July 2020, President Gotabaya Rajapaksa criticised Prof. Lakshman for not resorting to more money printing. “First of all, the Monetary Board, along with myself, is of the view that we have to be very proactive with our monetary policy decision making,” Dr. Weerasinghe said.

Source: Sunday Times April 10, 2022 18:11 UTC