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    Central Bank Governor Explains Why Interest Rates Were Kept Unchanged

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    • Post n°1

    Central Bank Governor Explains Why Interest Rates Were Kept Unchanged Empty Central Bank Governor Explains Why Interest Rates Were Kept Unchanged

    Post by Backstage Wed Sep 28, 2016 10:53 am


    Central Bank Governor Explains Why Interest Rates Were Kept Unchanged

    Wednesday, 28 September 2016 10:18


    Central Bank Governor Explains Why Interest Rates Were Kept Unchanged

    Central Bank Governor Dr. Indrajit Coomaraswamy said that the interest rates were kept unchanged since the Monetary Board took the view that the current policy is sufficient to maintain the balance in macro-economic activity while facilitating economic activity.

    In an interview with Bloomberg, he said that the Central Bank believes there is sufficient space for economic growth in the current monetary policy stance.

    He also expressed confidence that Sri Lanka will be able to reach its goal of 5 percent growth and single digit inflation by end of this year.

    He acknowledged that the April - June GDP growth slowed compared to last year but said that it was basically due to several mitigating factors including the drought and floods which affected large parts of the country. Sri Lanka is in a stabilizing period and will be able to achieve its target by the end of the year, the Governor added.

    Coomaraswamy said that the interest rates policy of the US Federal Reserve could have temporary effects on the world market but said that these effects will not be disruptive in the long run.
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