The Central Bank of Sri Lanka yesterday decided to keep the policy rates on hold amidst deceleration of credit to private sector and improved trade deficit position.

Accordingly the policy rates will remain unchanged at their current levels—repurchase rate at 7.75 percent and the reverse repurchase rate at 9.75 percent.

“The growth of credit to the private sector extended by commercial banks decelerated to 25.5 per cent, year-onyear, in September, from over 35 per cent seen prior  to March 2012. In the month of September, credit to the private sector expanded by less than Rs. 10 billion compared to the monthly increases of over Rs. 55 billion seen in February and March 2012,” the Central Bank said.