Weak economic performance in short term before moving to the recovery path and continuation of the credit contraction has been considered while positive signs such as narrowing down the trade deficit have forced CBSL to keep the tight monetary policy stance.
The Central Bank would expect a moderation of excessive market interest rates, in line with the prevailing policy interest rates. If an appropriate downward adjustment in the market interest rates would not take place in line with the envisaged disinflation path, the Central Bank will be compelled to impose administrative measures to prevent any undue movements in market interest rates.