The Board arrived at this decision, at its meeting held on 23 August 2023, following a careful analysis of current and expected developments in the domestic as well as the global economy, while noting the significant easing of monetary conditions effected since June 2023, the CBSL said.

The Monetary Board took note of the downward adjustment of market interest rates in response to monetary policy easing measures implemented thus far and the need to allow space for further adjustment of market interest rates swiftly, the release said.

However, the Board observed that market interest rates of certain lending products remain excessive and are not in line with the current monetary policy stance.

Moreover, the Board anticipates a faster reduction in overall market lending interest rates in line with the recent monetary policy easing measures