FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post

Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Sell EXPO Buy EDEN sentiment changed to Exit EXPO Enter EDEN
by samaritan Today at 4:03 pm

» Directors' Dealings today
by SAGA Today at 3:34 pm

» JOHN KEELLS HOLDINGS PLC (JKH.N0000)
by Eranx Today at 3:32 pm

» Top crossings today
by SAGA Today at 3:05 pm

» අද ජූලි 27 හෙට අනිද්දා අගෝස්තුවේ කොටස් වලට මොනවා වෙයිද ?
by SAGA Today at 2:47 pm

» BANKING SECTOR
by Eranx Today at 12:17 pm

» RIL JOURNEY
by Karthick Today at 11:33 am

» Govt. assures adequate fertiliser supply for tea industry
by samaritan Today at 11:23 am

» ASIA SIYAKA COMMODITIES PLC (ASIY.N0000)
by jehan008 Today at 10:46 am

» What are the short term profit stocks you are planning to buy on this Monday? (Only honest ppl please)
by 901886683 Today at 9:19 am

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Vishwanarth Today at 8:46 am

» EDEN HOTEL LANKA PLC (EDEN.N0000)
by Bakkabwoi Yesterday at 11:29 pm

» SEMB the ASPH
by Itzme Yesterday at 9:35 pm

» ONAL -might have a run
by SAGA Yesterday at 9:14 pm

» Imagine there is a bank account that credits your account each morning with cash. Each of us has such a bank. Its name is stock market.
by Asoka Samarakone Yesterday at 9:14 pm

» Top Foreign Trading today
by SAGA Yesterday at 8:41 pm

» Government loan repayment
by shariff Yesterday at 1:04 pm

» CITIZENS DEVELOPMENT BUSINESS FINANCE PLC(CDB.N0000)
by engineer Yesterday at 11:41 am

» Sri Lanka's Foreign Reserves set to top US$ 7 Billion - Cabraal
by samaritan Yesterday at 11:34 am

» Tea industry expected to contribute $ 200 million extra revenue to public coffers
by samaritan Yesterday at 11:25 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » CBSL to keep policy rates unchanged

CBSL to keep policy rates unchanged

Go down  Message [Page 1 of 1]

1CBSL to keep policy rates unchanged Empty CBSL to keep policy rates unchanged Mon Jul 20, 2015 11:46 am

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
With a general election round the corner, coupled with foreigners exiting from the government securities and stock markets and credit growth once more steadily picking up, to maintain a balance, the Central Bank of Sri Lanka (CBSL) will keep its policy rates unchanged for the third consecutive month when it makes its monetary policy stance known to the market on Friday (24 July), market sources told Ceylon FT.


CBSL's current standing deposit facility rate is 6% and its standing lending facility: 7.5%. CB reduced both of these rates after a 15 month lapse in April 2015.  An increase in policy rates will have a deleterious impact on credit growth, whereas a depreciation in policy rates will further exacerbate foreign exits from the government securities market due to its knock on effect of causing deflating pressure on government securities' yields and market rates, thereby making investments in such instruments unattractive to foreigners, they said.



Matters are made doubly worse due to foreigners exiting from these markets due to the prevailing political uncertainty.
Such foreign exits would cause further depreciating pressure on the rupee, already buffeted, due to such market forces impacting on it, a situation which the CBSL would want to avoid, the sources said.
A weak rupee would cause import prices to rise, which would have an adverse impact on the government, having to face a general election on 17 August, 2015. At the same time any increase in interest rates will have a negative impact on private sector credit growth, where the private sector is considered as the engine of economic growth.
Courtesy: Ceylon Financial 20 July 2015

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum