Central Bank keeps key policy rates steady for the second straight month

August 18, 2009 9.00 am: The Central Bank Monetary Board has decided to maintain the policy interest rates at their existing levels with the Repo rate at 8.5% and Reverse Repo rate at 11% for the second straight month.
According to the Central Bank’s monetary policy review, market interest rates continue to decline in response to the monetary policy measures taken by the Central Bank, but they are yet to adjust fully to the policy rate reductions by the Central Bank. The review also declared that inflation is expected to remain at single digit levels throughout the year. External sector stability has also enabled the Central Bank to build up its foreign exchange levels with net foreign exchange purchases by the Central Bank in the domestic market exceeding USD 600 million. With the disbursement of the first tranche of the IMF-SBA the gross official reserves of the country has exceeded USD 2.3 billion by August 17.
Taking these developments into account, the Monetary Board, at its meeting held on August 17, has decided to maintain the policy interest rates of the Central Bank at their existing levels for the second straight month.