Sri Lanka cenbank sets new single policy rate at 8%
COLOMBO, Nov 27 (Reuters) -Sri Lanka's central bank set a new single policy rate of 8% on Wednesday, aiming to catalyse the island nation’s nascent recovery from a deep financial crisis.
Sri Lanka's central bank (CBSL) said late on Tuesday that it will implement a single policy interest rate mechanism by introducing an overnight policy rate instead of the existing rate corridor.
Previously, the CBSL set two key rates, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR), which economists had expected will be reduced by 25 basis points each to 8% and 9%, respectively.
The SDFR and SLFR will no longer be considered policy interest rates, the bank said.
Reporting by Uditha Jayasinghe, editing by Swati Bhat
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