CBSL to maintain policy and reverse repurchase rates

CBSL to maintain policy and reverse repurchase rates

CBSL to maintain policy and reverse repurchase rates

Written by Staff Writer

23 Apr, 2014 | 11:04 am

The Monetary Board of the Central Bank of Sri Lanka has decided to maintain the policy repurchase and reverse repurchase rates unchanged.

The Central Bank says the decision was made in order to increase credit flow to the private sector.

In its monetray policy statement for the month of April, the Central Bank says that it decided to maintain the repo and reverse repo rates at 6.5 and 8 percent respectively.

The statement reads that infaltion was maintained at mid single digit figures in spite of a drop in supply brought on by dry weather conditions experienced thus far this year.

As such the Central bank notes that it decided to maintain the policy rates unchanged in order to increase credit flow to the private sector and stimulate economic growth.

The Central Bank notes that while credit to the state from the banking system in January and February this year stood at 43.3 billion rupees, it is expected that this figure will reduce in the future as a result of the government opting to raise funds through sovereign bond issues.

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