Central Bank hikes Statutory Reserve Ratio

Central Bank hikes Statutory Reserve Ratio

Central Bank hikes Statutory Reserve Ratio

Written by Staff Writer

30 Dec, 2015 | 8:50 pm

The Central Bank had decided to raise the Statutory Reserve Ratio applicable to all rupee deposit liabilities of commercial banks by 1.50 percentage points to 7.50 per cent to be effective from the reserve week commencing 16 January 2016.

The Central Bank of Sri Lanka adds that it has decided to maintain the Standing Deposit Facility Rate and the Standing Lending Facility Rate of the Central Bank unchanged at their current levels of 6.00 per cent and 7.50 per cent, respectively.

The Central Bank says that If the current excess liquidity in the domestic money market continues to remain high for an extended period, it could lead to an undue expansion in monetary aggregates, fuelling future inflation in the economy.

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