COLOMBO, Jan 17 (Reuters) - Sri Lanka's central bank kept
policy rates unchanged on Thursday, as expected after a surprise
cut last month, saying it expected inflation to moderate soon.
"The Monetary Board was of the view that current monetary
policy stance is appropriate," the central bank said in a
"Effective demand management policies that were in place in
2012 are likely to have moderated aggregate demand sufficiently,
reining in future inflation and inflation expectations. As a
result, inflation is projected to moderate from March 2013 and
reach mid-single digit levels thereafter."
The bank left the repurchase rate and the reverse repurchase
rate at 7.50 percent and 9.50 percent, respectively. It also
kept the commercial banks' Statutory Reserve Ratio (SRR) steady
at 8 percent.
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 Kim