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Monday, December 09, 2013 - 06.08 GMT

Policy rates maintained, monetary policy timely and appropriate

 

Central Bank has decided to maintain current policy interest rates as its Monetary Board is of the view that the monetary policy decisions implemented throughout 2013 are timely and appropriate.

Accordingly, the Repurchase rate would remain at 6.50 percent while the Reverse Repurchase rate remains at 8.50 percent, the Central Bank announced Monday.

According to the Central Bank, the real GDP growth accelerated in the third quarter of 2013 while the inflation reduced significantly to levels lower than anticipated and the external sector showed further progress.

All key sectors of the economy contributed positively to the real GDP growth of 7.8 percent in the third quarter of 2013. The Agriculture sector grew by 7.0 percent, Industry Sector by 8.1 percent while the Services sector grew by 7.9 percent.

The Central Bank expects the sound, broad based growth performance in the third quarter will result in over 7 percent economic growth for the year.

The rupee continued to remain stable against the US dollar within the flexible exchange rate regime, as a result of improving external trade activity, increased workers' remittances and tourist earnings, increased inflows to the financial sector, and strengthened market expectations.

Key public corporations performed well financially prompting substantial repayments to the banking sector and facilitating an increased flow of financial resources for private investment, the Central Bank reported.



 

 
 
   
   
     
   
   

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Last modified: December 09, 2013.

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