Central Bank Slashes Interest Rates to Control Inflation

News Today: Central Bank Cuts Interest Rates in Anticipation of Reducing Inflation

The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held recently, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 25 basis points (bps) to 8.25 percent and 9.25 percent, respectively.

The Board the arrived at this decision after carefully assessing the current and macroeconomic developments and possible risks,threats and uncertainties on the domestic and global fronts.

A spokesperson told Legacy Daily that the Board has taken measures to control inflation and propel the economy to reach its full capacity.
They also mentioned that based on available information inflation is likely to remain below the target of 5 per cent over the next several months.

Headline inflation as measured by the year on year change in the Colombo consumer price index was recorded at 1.7 per cent.
This was achieved after the revison of electricity tariffs, gas and fuel prices.

Core inflation was recorded at 4.4 per cent last month compared to 3.5 per cent in May 2024.Despite this,Headline inflation remained below the inflation target and is expected to gradually align with the targeted level over the next few months supported by appropriate policy measures.