Central Banks
Sri Lanka Cuts Rate First Time in 3 Years as Inflation Cools
- Headline inflation expected to hit single-digits in early 3Q
- Reserves estimated to have surpassed $3 billion as of end-May
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Sri Lanka unexpectedly cut its benchmark rate for the first time in nearly three years with the central bank targeting inflation easing to single-digits earlier, giving room to support the nation’s economic recovery that’s gotten a lift from bailout funds.
The Central Bank of Sri Lanka lowered the standing lending facility rate to 14% from 16.5%, according to a statement on its website on Thursday. None of the seven economists surveyed by Bloomberg had expected the move, with all predicting the rate to be kept unchanged.