Sri Lanka, Indonesia take different tacks despite common imbalances
Central Bank of Sri Lanka cuts interest rates while Bank Indonesia holds
Two Asian central banks grappling with large external imbalances headed down different policy paths this week, offering a hint of how monetary authorities in the region are preparing for the Federal Reserve's interest rate increase expected later this year.
The Central Bank of Sri Lanka today cut its standing lending facility rate and its money market repo rate by 50 basis points to 7.5% and 6% respectively following a drop in inflation to 0.1% in March.
The move followed Bank Indonesia's
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