Monetary Board relaxes policy interest rates

1 June 2023 08:03 am Views - {{hitsCtrl.values.hits}} 2 Bookmark

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The Monetary Board of the Central Bank relaxes policy interest rates by 250 basis points. Accordingly, SDFR comes down to 13 percent and SLFR to 14 percent.

The policy rates were reduced due to the quicker-than-expected deceleration in inflation.

The Monetary Board recommended requesting the government to consider phasing out the remaining restrictions on most items of merchandise imports.

Sri Lanka’s gross official reserves are estimated at US$ 3 billion as at end of May 2023, including a US$ 1.4 billion swap facility with the People’s Bank of China.

Following is the link to the CBSL statement in full:

https://www.cbsl.gov.lk/en/news/monetary-policy-review-no-4-of-2023

Comments - 2

Nouffer Thursday, 01 June 2023 09:36 AM

I asked ChatGPT, it says This news is regarding monetary policy changes made by the Central Bank's Monetary Board. Here's what the details mean: Relaxes policy interest rates by 250 basis points: A basis point is a unit of measure for interest rates and other percentages in finance. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. Therefore, a 250 basis point decrease means the policy interest rate was lowered by 2.5%. SDFR comes down to 13 percent: SDFR stands for Standing Deposit Facility Rate. It's the interest rate that banks get from the central bank for their deposits (money that they keep at the central bank). If the SDFR is decreased, it means banks will earn less interest on their deposits at the central bank. In this case, the new SDFR is 13%. SLFR to 14 percent: SLFR stands for Standing Lending Facility Rate. It's the rate at which the central bank lends money to commercial banks. If this rate is lowered, it means it's cheaper for

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Silva Thursday, 01 June 2023 10:36 AM

Very good explanation.

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