Categories: BusinessHeadlines

LNP – CBSL further eases monetary policy stance

The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on 26 November 2024, decided to further ease the monetary policy stance and set the newly introduced Overnight Policy Rate (OPR) at 8.00 per cent.

With this change, the effective reduction in the policy interest rate would be around 50 basis points from the current level of the Average Weighted Call Money Rate (AWCMR), which continues to serve as the operating target of the Flexible inflation Targeting (FIT) framework.

The Board arrived at the decision to ease the monetary policy stance following a comprehensive assessment of current and expected domestic and international economic developments, including risks and uncertainties, to ensure that inflation treads towards the inflation target of 5 per cent, while supporting the economy to reach its full capacity.

With the latest available incoming data, the critical factors that convinced the Board to further ease monetary policy were the deeper-than-expected deflation conditions in the near term with further moderation of underlying inflationary pressures and inflation expectations, better-than-expected developments on the external front, and the lack of further space available for a reduction in market lending rates.

Tyronne Jayamanne

Recent Posts

LNP – Unusual activities reported in areas of elephant-human conflicts: Veterinarians’ Association

Unusual activities are being reported in the areas where the elephants are being cased or…

8 hours ago

LNP – New maximum retail price set for canned fish

The Consumer Affairs Authority (CAA) has announced new maximum retail prices for specific types of…

8 hours ago

LNP – Special police operation targeting reckless long-distance bus drivers

Sri Lanka Police have implemented a special traffic operation during the festive season aimed at…

8 hours ago

LNP – President calls for unified monitoring division to tackle illegal migration and drug smuggling

President Anura Kumara Dissanayake has held a discussion today (28) at the Presidential Secretariat with…

8 hours ago

LNP – Over 8,000 motorists penalized for traffic offenses in 24 hours

In a 24-hour operation that concluded at 6.00 a.m. today (28), Sri Lanka Police have…

9 hours ago

LNP – Christopher Nolan’s next film is based on ‘The Odyssey’

Christopher Nolan is following his Oscar-winning “Oppenheimer” with a true epic: Homer’s “The Odyssey.” It…

1 day ago