This year’s first monetary policy announcement on Jan. 20

The Central Bank yesterday said the first monetary policy review announcement for this year would be made on January 20, at 7:30 a.m.

The Central Bank is largely expected to turn hawkish this year, along with the other global central banks, which have either already begun or expressed their plans to taper the unprecedented stimulus unleashed to fight the pandemic.

The easy money approach followed by the central banks has currently created significant inflationary pressures on global economies.

Sri Lanka officially ended its dovish monetary policy in August, where the Central Bank increased the policy rates by 50 basis points.

Analysts are seeing at least three rate hikes this year, given Sri Lanka’s inflation, foreign exchange and BoP problems.