CBSL reduces the benchmark interest rates to encourage the financial system to aggressively enhance lending to productive sectors of the economy. Despite the several measures implemented by CBSL to bring down the market lending rates, CBSL believes there is further space remains for market lending rates to adjust downwards. The statement says " Despite high levels of surplus liquidity available to banks, credit extended to the private sector contracted significantly in May 2020"
CBSL reduces the benchmark interest rates by another 100 basis points to 4.5 percent and 5.5 percent
Interest RatesJul 9, 2020