Business

Central Bank Holds Interest Rates Steady as Inflation Cools

Central Bank Holds Interest Rates Steady as Inflation Cools

Policymakers kept the benchmark rate unchanged at 6.5 percent, citing easing inflation and stable currency conditions.

The Central Bank left its benchmark interest rate unchanged at 6.5 percent on Thursday, noting that headline inflation has slowed for a fourth consecutive month.

In its monetary policy statement, the bank said domestic demand remains resilient while import costs have stabilised. Analysts now expect a modest rate cut in the final quarter if the disinflation trend continues.

Written by

Chamath Gunasekara

Business analyst reporting on markets, banking and the regional economy.