Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
Click on the chart for more details
Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

CBSL expects rates to fell as inflation is slowing down in next few months

Interest RatesJan 2, 2023
CBSL expects rates to fell as inflation is slowing down in next few months
This story is available exclusively to charts.lk subscribers. Become an member and start reading now.

Banks’ FD rates are still rising (Nov) despite the T-Bill rates stabilized since September. The average FD rates are at 13.37% while new FD rates are offered at 23.63%, on the other hand, the average Lending rates are at 18.42% and new lending rates are at 26.04%.

Interestingly, the average deposit rates were at 4.82% one year ago and lending rates were at 9.79%, the gap was about 5%. Currently, the new deposit rate is at 23.63% and the new lending rate is at 26.04%, which means the gross spread has come down to 2.50%.

But the bank’s book carries low-cost & high-cost borrowing averaging 13.37% and low & high rate lending averaging 18.42% and keeping a 5.00% margin even in November. Therefore the overall books have not got an impact yet. The only issue is the recovery of lending and cash flows.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.