The Central Bank of Sri Lanka (CBSL) unexpectedly cut its two policy rates at today’s meeting. Inflation accelerated at the end of last year while the economic upswing is set to stay strong. Nevertheless, the CBSL anticipates that food price pressures will ease in coming months while high investment will reduce capacity constraints. We are not so sure. Accordingly, we still think that rates will eventually move up in 2011; our best guess is from mid-year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services