New Central Bank management retains current interest rates

New Central Bank (CB) Governor Arjuna Mahendran didn’t effect major changes on Tuesday, while chairing his first meeting of the Monetary Board, keeping interest rates at current levels.

The CB in its monthly monetary policy review after a meeting of the board on Monday, decided to keep policy interest rates at previous levels.

It said with the appropriate macroeconomic policies to boost domestic and foreign investor confidence, the Sri Lankan economy is expected to record a robust performance in the period ahead.

“Taking the (above) developments in the economy into consideration, the Monetary Board at its meeting held on 26 January 2015, was of the view that the current monetary policy stance is appropriate, and accordingly, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank of Sri Lanka unchanged at 6.50 per cent and 8.00 per cent, respectively. Access to the Standing Deposit Facility (SDF) will remain rationalized,” the CB said in a statement.

The CB detailed out the developments in various sectors of the economy which it said was satisfactory. The policy interest rates set the tone for commercial bank interest rates.

There was no reference to the value of the rupee which has been under pressure from other international currencies, which market observers said, is likely to be adjusted in the market and not a CB policy statement. – Ends