Sri Lanka Raises Interest Rates
The Sri Lanka Central Bank increased its interest rates by half a percentage point today to curb double-digit inflation - the highest in Asia and stem a decline in its currency. This is the third rate hike this year and has come two weeks ahead of a scheduled review. The bank had left the rate unchanged on September 15, and was due to review it on October 13.
The monetary board observed that inflation has not declined to a satisfactory rate as yet and an unusual increase in lending by commercial banks and substantially higher borrowings from the Central Bank are fuelling inflation. Sri Lanka's economy continues to expand at an 8 percent pace.
The Sri Lanka Central Bank increased its interest rates by half a percentage point today to curb double-digit inflation - the highest in Asia and stem a decline in its currency. This is the third rate hike this year and has come two weeks ahead of a scheduled review. The bank had left the rate unchanged on September 15, and was due to review it on October 13.
The monetary board observed that inflation has not declined to a satisfactory rate as yet and an unusual increase in lending by commercial banks and substantially higher borrowings from the Central Bank are fuelling inflation. Sri Lanka's economy continues to expand at an 8 percent pace.
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