Sri Lanka surprises with 100bp policy hike
Central bank says tightening needed to combat inflation and rupee’s slide amid Iran war
Sri Lanka’s central bank has unexpectedly raised interest rates a full percentage point to 8.75% due to spiking inflation and currency depreciation caused by the US-Israel war on Iran.
The Central Bank of Sri Lanka’s (CBSL) monetary policy board decided on the 100 basis point hike at a meeting held on May 15, according to a statement published today (May 26), which marked its largest policy tightening move in three years. Most economists polled by Reuters and Bloomberg ahead of the decision
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary policy decisions
More African nations respond to inflationary effects of Iran war
Mauritius and Rwanda raise rates, though Nigeria, Ghana and Egypt opt to hold
Iceland hikes by 25bp, citing rising expectations
Economic outlook deteriorates as energy prices rise and domestic wage pressures persist
Indonesia surprises with 50bp hike
Bank predicts Fed tightening in 2027 as it continues to battle rupiah weakness
Banxico announces final rate cut in two-year easing cycle
Split decision reflects concerns over weak growth and above-target inflation
European central banks opt to hold
Albania, Czech Republic, Poland, Serbia and Sweden keep rates constant
Norway and Moldova are first in Europe to hike rates on Iran war
Norges Bank cites broad inflation concerns, but Moldova points to conflict-induced energy spike
RBA tightens again as Iran war pushes up inflation
Price shocks caused by conflict have made all Australians poorer, governor says
Bank of Botswana hikes rates in bid to boost transmission
Central bank admonishes lenders for ‘undermining the policy intent’