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Sri Lanka Central Bank to maintain interest rates to boost economic recovery
Thu, Apr 22, 2010, 09:02 am SL Time, ColomboPage News Desk, Sri Lanka.
Apr 22, Colombo: The Central Bank of Sri Lanka is to maintain the policy interest rates unchanged to facilitate the recovery in domestic economic activity.
The Bank kept its benchmark interest rates unchanged at a five-year low of 9.75 percent for the reverse repurchase rate and at 7.5 percent for the repurchase rate.
According to a statement released Thursday by the Central Bank, the annual average inflation slightly increased to 3.2 percent compared to the previous month while inflation for March this year decreased to 6.3 percent from a 6.9 percent in February.
The Central Bank said the reserve money has been expanding at a higher rate since the last quarter of 2009 but declined somewhat following the New Year festive period. The Bank attributed the expansion in reserve money to the increased circulation of currency in the election period.
The Bank said will continue to closely monitor the movements in monetary aggregates, the expansion of which has begun to decelerate and take appropriate action if necessary.
The Monetary Board which met Wednesday considered these developments in their decision to keep the interest rates steady.
The Monetary Board will continue to monitor economic developments and prospects, with a view to reviewing its policy stance, the Bank said.
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