Will interest rate rise in Sri Lanka? Central Bank Governor responds

kj18

kj18

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The prevailing low interest rates in Sri Lanka would be long term and there are no reasons for them to increase, said the Governor of the Central Bank of Sri Lanka.

Central Bank Governor Ajith Nivard Cabraal told AdaderanaBiz.lk that there are possibilities of reducing the interest rates further.

Economic factors like the current low inflation index has enabled the interest rates to be kept low, he added

Recently, the Central Bank relaxed its monetary policies which enabled interest rates to be reduced and gradually commercial banks began reducing their interest rates.

This resulted in the country enjoying low interest rates.
ADA DERANA

bandulawee

bandulawee

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ADA DERANA is talking BS. The reason commercial banks reduced interest rates is not due to relaxing monetary policy but tightening of monetary policy and giving specific instructions to commercial banks to reduce deposit rates and follow up with reducing lending rates. This is not because of low inflation in the country ( only published inflation index is low) or to encourage private borrowing. This is only for the government to borrow from commercial banks at low interest. The actual situation about inflation and interest rates was clearly reflected when the President announced high interest rates for Senior Citizens who are affected by high inflation.

sharemarket

sharemarket

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kj18 wrote:The prevailing low interest rates in Sri Lanka would be long term and there are no reasons for them to increase, said the Governor of the Central Bank of Sri Lanka.

Central Bank Governor Ajith Nivard Cabraal told AdaderanaBiz.lk that there are possibilities of reducing the interest rates further.

Economic factors like the current low inflation index has enabled the interest rates to be kept low, he added

Recently, the Central Bank relaxed its monetary policies which enabled interest rates to be reduced and gradually commercial banks began reducing their interest rates.

This resulted in the country enjoying low interest rates.
ADA DERANA

Good news for share market... Very Happy

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Will interest rate rise in Sri Lanka? Central Bank Governor responds

1 Will interest rate rise in Sri Lanka? Central Bank Governor responds Thu Dec 04, 2014 9:13 am

kj18

2 Re: Will interest rate rise in Sri Lanka? Central Bank Governor responds Thu Dec 04, 2014 3:00 pm

bandulawee

3 Re: Will interest rate rise in Sri Lanka? Central Bank Governor responds Thu Dec 04, 2014 7:53 pm

sharemarket

4 Re: Will interest rate rise in Sri Lanka? Central Bank Governor responds

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