Sri Lanka cuts rates 50bp in defiance of IMF advice

srilanka

The Central Bank of Sri Lanka has gone against IMF advice that it should avoid further monetary easing, and slashed its benchmark interest rate by 50 basis points to 7%.

Despite the IMF warning that interest rates "should be on hold" in the short term, the monetary board today cut rates in a bid to stimulate the country's static growth.

The board said it was "somewhat concerned by the slower than expected pick-up in economic activity" and identified a "growing need to enhance domestic demand and

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