CBSL introduces Overnight Policy Rate at 8 %.

The Central Bank also moved to a single policy interest rate mechanism from its dual policy interest rate mechanism, the Governor said. Accordingly, the Overnight Policy Rate (OPR), set at 8 per cent, will serve as the primary monetary policy tool of the Central Bank to signal and operationalise its monetary policy stance henceforth. Moreover, with this transition to the single policy interest rate mechanism, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) will no longer be considered policy interest rates of the Central Bank. SDFR and SLFR, the rates applicable for standing facilities that will continue to be available for participatory institutions for overnight transactions with the Central Bank, are linked to the OPR with a margin of ± 50 basis points.

Accordingly, SDFR and SLFR will be 7.50 per cent and 8.50 per cent, respectively.

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