Sri Lanka freezes rates for 7th month, as expected

Last Updated: Sat, Nov 17, 2012 19:12 hrs

COLOMBO, Nov 16 (Reuters) - Sri Lanka's central bank kept policy rates unchanged on Friday for the seventh straight month, as expected, on decelerating private sector credit growth and easing inflationary pressure due to lower food prices.

"The onset of the intermonsoonal rains is likely to increase the supply of agricultural produce alleviating price pressures further," the central bank said in a statement.

The Monetary Board of the Central Bank Lanka at its meeting held on 16 December 2012 was of the view that the current monetary policy stance is appropriate. Accordingly, the policy rates will remain unchanged at their current levels."

The bank left the repurchase rate and the reverse repurchase rate at 7.75 per cent and 9.75 per cent respectively.

A Reuters poll with 14 analysts had expected that both rates would remain unchanged at their highest in three years. (Reporting by Shihar Aneez and Ranga Sirilal; Editing by Ron Popeski)

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