COLOMBO, June 23 (Reuters) - Sri Lanka’s central bank kept its benchmark interest rates steady on Friday, as expected, and said its current monetary policy stance is appropriate.
The central bank kept the standing deposit facility rate (SDFR) at a four-year peak of 7.25 percent and the standing lending facility rate (SLFR) at 8.75 percent, the highest since July 2013.
Colombo’s fiscal consolidation process and inflows to the government appear to have reduced the pressure on interest rates in the domestic securities market substantially, the central bank said in a statement.
The central bank had raised rates four times between December 2015 and March this year to contain inflation and curb rapid private-sector credit growth.
A Reuters poll this week showed economists largely expected the central bank to keep both rates unchanged.
Reporting by Shihar Aneez and Arnab Paul; Editing by Shri Navaratnam