Sunday, 25 May 2014 - 18:35
Trade deficit contracts 12 percent in first quarter
Since December 2012, the Central Bank has eased monetary policy with its key policy interest rates, the Standing Deposit Facility Rate and the Standing Lending Facility Rate, being reduced by 125 and 175 basis points and the Statutory Reserve Requirement on Rupee deposit liabilities of commercial banks being reduced by two percentage points.
Responding to the eased monetary policy stance, market lending and deposit interest rates have adjusted downwards substantially, although there is further room for downward adjustment in long term lending rates.
Benign inflation and favourable inflation outlook, which were the key contributory factors in enabling the maintenance of the present monetary policy stance, continue to remain favourable.