Central Banks
Sri Lanka Renews Policy Easing With Cut in Benchmark Rates
- Standing lending and deposit facilities lowered by 50 bps
- Nation’s inflation had eased for first time in five months
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Sri Lanka’s central bank unexpectedly renewed its monetary easing cycle to support a rebound in the economy after inflation eased for the first time in five months.
The Central Bank of Sri Lanka lowered the standing lending facility rate by 50 basis points to 9.50%. Most economists surveyed by Bloomberg forecast monetary policy to be left unchanged. The deposit facility rate was also cut by 50 basis points to 8.50%.