S Lanka keeps rates on hold as inflation shows signs of easing
Tuesday, 16 September 2008
COLOMBO, Sept 15 (AFP): Sri Lanka's central bank today kept its key interest rate on hold for the 19th straight month as inflation showed signs of easing, a statement said.
The Colombo-based bank left its benchmark repurchase rate unchanged at 10.5 per cent, while the cash reserve ratio-the percentage sum commercial banks must keep on deposit-was left at 12.0 per cent. Inflation, which hit a historic high of 28.2 per cent in June, has shown signs of easing with the Colombo consumer price index reporting a lower rate of 24.9 per cent in August.
"This decrease could be attributed mainly to... a decline in prices of food items as well as the containment of demand pressures through monetary policy," the bank said after its monthly monetary policy meeting.
The Colombo-based bank left its benchmark repurchase rate unchanged at 10.5 per cent, while the cash reserve ratio-the percentage sum commercial banks must keep on deposit-was left at 12.0 per cent. Inflation, which hit a historic high of 28.2 per cent in June, has shown signs of easing with the Colombo consumer price index reporting a lower rate of 24.9 per cent in August.
"This decrease could be attributed mainly to... a decline in prices of food items as well as the containment of demand pressures through monetary policy," the bank said after its monthly monetary policy meeting.