Sri Lanka considers move to single policy rate
CBSL plans overhaul of monetary operations and improved liquidity forecasting
The Central Bank of Sri Lanka (CBSL) is considering whether to adopt a single policy rate, as it looks to boost the monetary transmission mechanism.
Governor P Nandalal Weerasinghe raised the possibility of the new rate framework in his annual statement on policy today (January 10).
A single rate could “improve the monetary policy transmission and signalling effect of the monetary policy stance”, the governor said.
Many central banks use a range of interest rates to set monetary policy, though
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