{"id":479518,"date":"2023-06-01T12:45:39","date_gmt":"2023-06-01T10:45:39","guid":{"rendered":"https:\/\/pre.efe.com\/?p=479518"},"modified":"2023-06-01T13:17:34","modified_gmt":"2023-06-01T11:17:34","slug":"crisis-hit-sri-lanka-turns-to-dovish-rates-to-boost-recovery","status":"publish","type":"post","link":"https:\/\/pre.efe.com\/en\/latest-news\/2023-06-01\/crisis-hit-sri-lanka-turns-to-dovish-rates-to-boost-recovery\/","title":{"rendered":"Crisis-hit Sri Lanka turns to dovish rates to boost recovery"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Colombo, June 1 (EFE).- Sri Lanka\u2019s central bank Thursday cut the key policy interest rates by 250 basis points to boost the island\u2019s economic growth amid a slowing inflation pace.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The central bank has maintained a tight monetary policy after excess money printing under the previous government in a low-interest rate regime led to hyperinflation last year amid a record growth contraction of 7.8 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bank\u2019s Monetary Board decided to ease \u201cmonetary conditions in line with the faster than expected slowing of inflation, gradual dissipation of inflationary pressures, and further anchoring of inflation expectations,\u201d the central bank said in a statement.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-1024x683.jpeg\" alt=\"\" class=\"wp-image-479634\" width=\"830\" height=\"553\" srcset=\"https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-1024x683.jpeg 1024w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-300x200.jpeg 300w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-768x512.jpeg 768w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-1536x1024.jpeg 1536w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-430x286.jpeg 430w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16-1200x800.jpeg 1200w, https:\/\/pre.efe.com\/wp-content\/uploads\/2023\/06\/image-16.jpeg 1920w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><figcaption class=\"wp-element-caption\"><em>A Sri Lankan Public Health Inspector (PHI) examines a stagnant water sample for suspected dengue mosquito breeding at a construction site in Colombo, Sri Lanka, 31 May 2023. EFE-EPA\/CHAMILA KARUNARATHNE<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<div class=\"media-content-img\" style=\"margin-bottom: 20px\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe commencing of such monetary easing is expected to provide an impetus for the economy to rebound from the historic contraction of activity in 2022, while easing pressures in the financial markets,\u201d said the statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The country declared sovereign debt default in April last year as it ran out of foreign currency to repay its loans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The International Monetary Fund has agreed to a $3-billion four-year loan while the island nation is negotiating with its creditors for debt restructuring.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation has started to decelerate faster than projected earlier, supported by the lagged impact of tight monetary and fiscal policies. EFE<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">san-ssk<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colombo, June 1 (EFE).- Sri Lanka\u2019s central bank Thursday cut the key policy interest rates by 250 basis points to boost the island\u2019s economic growth amid a slowing inflation pace. The central bank has maintained a tight monetary policy after excess money printing under the previous government in a low-interest rate regime led to hyperinflation &#8230; <a title=\"Crisis-hit Sri Lanka turns to dovish rates to boost recovery\" class=\"read-more\" href=\"https:\/\/pre.efe.com\/en\/latest-news\/2023-06-01\/crisis-hit-sri-lanka-turns-to-dovish-rates-to-boost-recovery\/\" aria-label=\"Read more about Crisis-hit Sri Lanka turns to dovish rates to boost recovery\">Read more<\/a><\/p>\n","protected":false},"author":198164071,"featured_media":479528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[122140],"tags":[],"class_list":["post-479518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v27.9) - 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