Standard Chartered Bank’s take on interest and Forex rates

Summary

The Central Bank of Sri Lanka (CBSL) kept rates on hold at its 13 June policy meeting, leaving the repo and reverse repo rates at 7.75% and 9.75%, respectively. SCB feels that the Central Bank’s policy bias is likely to shift back to growth from inflation given the uncertain global outlook and weaker demand from the EU and US, Sri Lanka’s key export markets.