June 25, Colombo: Central Bank of Sri Lanka today kept official interest rates steady at their highest levels since 2002, the Bank said.

“Within the monetary sector, reserve money, which is the operational target of the monetary policy, was maintained within the targeted level thus far in 2007 and it is poised to be well within the second quarter target as well,” the Central Bank said in a statement.

The overnight repurchase rate remains at 10.50 percent and the reverse repurchase rate was held at 12 percent.

“Market liquidity has remained broadly in balance and volatility in the short-term interest rates, particularly in the interbank call rate, has declined, reaching a stable level. These favourable trends are expected to continue further,” it said.

The Central Bank last raised rates by 50 basis points in February, the fifth rise since June 2006 aiming to curb inflation.