Policy rates cut 50bp to 7% repo and 9% reverse repo

VISA · 1 Monetary Policy Review – May 2013 Fri May 10, 2013 7:36 am

VISA

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130510e.pdf

sashimaal · 2 Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:37 am

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Policy rates cut 50bp to 7% repo and 9% reverse repo: Central Bank - LBO

Light of Hope

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Link Please

sashimaal wrote:Policy rates cut 50bp to 7% repo and 9% reverse repo: Central Bank - LBO

sashimaal

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130510e.pdf

balapas

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You are good first to note. Here is the Daily Mirror link also more than we expected but good for all of us

http://www.dailymirror.lk/news/29266-sri-lanka-cuts-rate-to-spur-growth.html

Light of Hope

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Rapaport

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Pretty big cut.

I was expecting 0.25% in 2 stages this year!
Obviously the news had leaked and hence market started rising few weeks ahead!

Lets see the outcome now.
Banks have to loosen their zips and reduce rates now!

Cheers!

hariesha

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Cheers! CSE will have a good run this year wiping out all losses and extending to new highs.

The bull run started from 4900 level will continue at least for another year. Good for all of us.

balapas

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There will be a bull run couple of days and a correction. I think the interest rate cut was already incorporated in to the investing decisions by some people.

sandunj

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Wow... never expect so much... good injection .

Rapaport

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Even though rate cut it was incorporated in investment decision by some, such rate cuts are gonna trigger growth, increase loans and prop up businesses.

The government has to cut its extra expenses and not make pvt sector suffer for its follies!

Cheers!

sandunj

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Guys What about FD Int rate?

Rapaport

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Bank interest rates didnt move much last time when rate was cut in December or so.

So now banks will have to un- button, pull their zips down and bring rates down for loans and deposits! The msg is clear from CBSL!

Sri Lanka cuts rates to boost credit
http://www.lankabusinessonline.com/news/Sri_Lanka_cuts_rates_to_boost_credit/1815513506

Cheers!

Last edited by Rapaport on Fri May 10, 2013 8:35 am; edited 1 time in total

K&M

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PABC, NTB, CDB, SEYB, COMB. Show some colors today.

Slstock

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Yes I was expecting, around 0.25 too, This is bigger than expected by us.

Hmm, better to temporary remove some of my sell orders.

After the last CB rate cut banks/fin slowly reduced rates upto2-3%.

With a 0.5 CB cut now another 2% drop ( gradual not straightaway ) can happen . Bank needs to compete with lending rate too ;-) . So lending no money.

Rapaport wrote:Pretty big cut.

I was expecting 0.25% in 2 stages this year!
Obviously the news had leaked and hence market started rising few weeks ahead!

Lets see the outcome now.
Banks have to loosen their zips and reduce rates now!

Cheers!

balapas

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slstock wrote:Yes I was expecting, around 0.25 too, This is bigger than expected by us.

Hmm, better to temporary remove some of my sell orders.

After the last CB rate cut banks/fin slowly reduced rates upto2-3%.

With a 0.5 CB cut now another 2% drop ( gradual not straightaway ) can happen . Bank needs to compete with lending rate too ;-) . So lending no money.

Rapaport wrote:Pretty big cut.

I was expecting 0.25% in 2 stages this year!
Obviously the news had leaked and hence market started rising few weeks ahead!

Lets see the outcome now.
Banks have to loosen their zips and reduce rates now!

Cheers!

I am revising my sell orders, I think everyone must be doing it. Very Happy

assasin

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Happy to say I'm a big bull. alien

salt

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wonderful! cheers!

Aubrey Perera

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Great News !!! lets all have a good times.

Bond

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Gotta feel for the finance companies that have deposit rates cap based on these interest rates. They are gonna struggle offering 11% odd for 1 yr.

The banks will suck up all the deposits from these finance companies

K.Haputantri

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hariesha wrote:Cheers! CSE will have a good run this year wiping out all losses and extending to new highs.

The bull run started from 4900 level will continue at least for another year. Good for all of us.

Agree but I must also add that the current SEC boss can't get the praise for the current run because its the work of the CB & the Finance Ministry. Similarly, former SEC bosses can't be blamed for bear run those days for the same reason because the policy rates werer kept very low during that period. Unfortunately, they were chased away by manipulators for doing their legitimate work - tightning the regulatory measures.

salt

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Accordingly, the Monetary Board decided at its meeting held on 9th May 2013 to
reduce the Repurchase rate and the Reverse Repurchase rate of the Central Bank by
50 basis points, respectively, thereby placing the Repurchase Rate at 7.00 per cent and
the Reverse Repurchase Rate at 9.00 per cent. In addition, the reserve maintenance
period of commercial banks will also be increased to two weeks from one week with
effect from 1st June 2013 in order to offer greater flexibility to commercial banks in
managing their liquidity, while maintaining the Statutory Reserve Ratio at the current
level of 8 per cent.
certainly, this is more than expected! i ma delighted!

wiki

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welcome the decision.. this is good for growth.

Lets join the party Very Happy

NB: Hope treasury may not cut the vehicle import tax Very Happy

Rapaport

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Its too early to cut vehicle tax.

Govt will not want to repeat mistakes again.

Also roads are too congested and govt on a mission to cut imports from India
(Bajaj and Maruti)

Cheers!

worthiness

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CB is always under pressure from IMF & global lenders on policy decisions taken. What will be the reaction from such parties in lowering the interest rate with decreasing inflation.?

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Policy rates cut 50bp to 7% repo and 9% reverse repo

1 Monetary Policy Review – May 2013 Fri May 10, 2013 7:36 am

VISA

2 Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:37 am

sashimaal

3 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:46 am

Light of Hope

4 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:48 am

sashimaal

5 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:52 am

balapas

6 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:55 am

Light of Hope

7 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 7:58 am

Rapaport

8 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:06 am

hariesha

9 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:17 am

balapas

10 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:21 am

sandunj

11 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:22 am

Rapaport

12 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:26 am

sandunj

13 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:27 am

Rapaport

14 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:34 am

K&M

15 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:38 am

Slstock

16 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 8:39 am

balapas

17 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:01 am

assasin

18 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:39 am

salt

19 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:45 am

Aubrey Perera

20 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:48 am

Bond

21 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:52 am

K.Haputantri

22 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:54 am

salt

23 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:58 am

wiki

24 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 10:14 am

Rapaport

25 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 10:28 am

worthiness

26 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo

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