Now that CB has done its job, RW & Harsha should pick up the ball & play the game
Partial and cautious relaxation of monetary policy
Monday, 9 April 2018
The Central Bank in its second monetary policy review in 2018, released last week, has cautiously and partially relaxed the tight policy package it had introduced earlier when inflation was rearing its ugly head causing chaos to investment initiatives in the country (available at: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20180404_Monetary_Policy_Review_No_2_2018_e_U45p3.pdf).Accordingly, it has reduced the interest rate which it charges when cash-short commercial banks borrow from it to meet temporary cash shortages – known as Standing Lending Facility – by a quarter of a percent from 8.75% to 8.50%.
