April 21, 2014 / 7:13 AM / 5 years ago

POLL -Sri Lanka central bank seen keeping key rates at multi-year lows on Tuesday

* Policy rate decision due Tuesday, April 22 at 7:30 am (0200 GMT)
    * Key monetary policy rates are already slashed to multi-yr low

    COLOMBO, April 21 (Reuters) - Sri Lanka's central bank is expected to keep
its key policy rates steady on Tuesday, a Reuters poll showed, in a sign it
expects private sector credit growth to recover after rates were slashed to
multi-year lows at the start of the year.
    The central bank has cut the repurchase rate by 125 basis points (bps) and
reverse repurchase rate by 175 bps between December 2012 and January 2014 to
stimulate economic growth, which picked up to 7.3 percent last year from 6.3
percent in the previous year. 
    Private sector credit grew 5.2 percent year-on-year in January, the slowest
expansion since May 2010. In December, credit was 7.5 percent higher than a year
ago, and in January 2013 it grew an annual 15.5 percent.
    The central bank has estimated the $67 billion economy would grow 7.8
percent this year. 
    Following are the poll's forecasts for where rates will be after Friday's
announcement:      
                    Repo     Reverse repo    SRR
                  (in pct)    (in pct)     (in pct)    
Median              6.50         8.00       6.00
Average             6.50         8.00       6.00  
Minimum             6.25         7.75       6.00
Maximum             6.75         8.25       6.00   
Rates in March      6.50         8.00       6.00
No. of analysts       13           13         13
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 (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Shri Navaratnam)
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