Sri Lanka Unexpectedly Cuts Policy Rate to Bolster Recovery (1)

Sri Lanka’s central bank unexpectedly cut its benchmark rate for the first time in six months, renewing its monetary policy easing cycle to bolster economic recovery.

The Central Bank of Sri Lanka cut the overnight policy rate by 25 basis points to 7.75% on Thursday. None of the economists in a Bloomberg survey had predicted the move.

“The Board is of the view that this measured easing of monetary policy stance will support steering inflation toward the target of 5%, amidst global uncertainties and current subdued inflationary pressures,” the monetary authority said in a statement.

After surpassing growth ...