Sri Lanka Lowers Key Interest Rate

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Friday, the Monetary Board of the Central Bank of Sri Lanka reduced its key policy rate by 50 basis points, effective on September 11.

The central bank slashed the reverse repurchase rate to 10.5% from 11% and the repurchase rate lowered to 8% from 8.5%. The central bank had retained the key interest rate in last two consecutive months.

Inflation is expected to gradually rise to moderate levels in the approaching months, it is projected to remain at single digit levels during the rest of 2009, the central bank said. The consumer price index or CPI rose 0.9% year-on-year in August, slower than the 1.1% growth in July

The release of the next regular statement on monetary policy will be on 12 October 2009, the report said.

Friday, the Monetary Board of the Central Bank of Sri Lanka reduced its key policy rate by 50 basis points, effective on September 11. (Market News Provided by RTTNews)