Sri Lanka raises policy rate by 100 basis points to 8.75%
Sri Lanka raised its policy rate to 8.75 percent today to combat inflation and currency pressure. The move comes as the IMF reviews a 700 million dollar loan.
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The Central Bank of Sri Lanka raised its benchmark policy rate by an outsized 100 basis points to 8.75% on the following day. The move exceeded the 25-basis-point hike forecast by seven of 12 economists polled by Reuters. Policymakers are combating a 40% fuel price surge and currency depreciation triggered by conflict involving Iran.
