CBSL to maintain SDFR & SLFR
The Central Bank has issued a press release, stating that it has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at its current levels.
In the statement, the CBSL states that the Monetary Board decided to maintain the SDFR and the SLFR at its current levels of 4.50% and 5.50% respectively.
The Board arrived at this decision after considering the macroeconomic conditions and expected developments on the domestic and global fronts.
The Monetary Board has noted the reduction in overall market lending rates during 2020 and stressed the need for a continued downward adjustment in lending rates to boost economic growth due to the absence of demand.
It adds that considering the significant levels of excess liquidity prevailing in the domestic market, the rates must be adjusted.