Central Banks
Sri Lanka Cuts Rate to Revive Growth as Inflation Cools
- Standing lending facility rate cut by 100 basis points to 11%
- Short-lived upward movement in headline inflation seen
Low single-digit inflation is giving the central bank room to ease rates after a pause in August and bolster the economy after the worst financial crisis in seven decades.
Photographer: Jonathan Wijayaratne/BloombergThis article is for subscribers only.
Sri Lanka cut its benchmark rate for a third time this year to help revive economic growth and rein in real borrowing costs.
The Central Bank of Sri Lanka lowered the standing lending facility rate by 100 basis points to 11%. Five of the seven economists surveyed by Bloomberg forecast cuts ranging from 50-200 basis points, while two predicted a hold.