Sri Lanka keeps policy rates on hold, as expected

Last Updated: Tue, Oct 23, 2012 08:31 hrs

COLOMBO, Oct 23 (Reuters) - Sri Lanka's central bank kept policy rates unchanged on Tuesday, as expected, as private sector credit growth has moderated sufficiently to curb inflationary expectations, the central bank said in a statement after a meeting of its monetary board.

The repurchase rate and the reverse repurchase rate stand at 7.75 per cent and 9.75 per cent, respectively.

The central bank also said with the resultant improvement in the trade balance, together with other inflows, had helped the balance of payments show a surplus of $305.9 million by August, and helped to raise the current level of official reserves to $7 billion, equivalent to around nearly 4 1/2 months of imports. (Reporting by Shihar Aneez and Ranga Sirilal; Editing by Simon Cameron-Moore)

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