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Sri Lanka cenbank cuts rate by 25 bps in surprise move to foster growth

Investing.comThursday, May 22, 2025 at 3:40:42 AM
Sri Lanka cenbank cuts rate by 25 bps in surprise move to foster growth
Sri Lanka's central bank just made an unexpected move—it lowered interest rates by 25 basis points (0.25%) to try and kickstart economic growth. This comes as a bit of a surprise since most analysts weren’t expecting a cut right now, signaling the bank’s growing focus on reviving the economy after last year’s crisis.
Editor’s Note: For a country still recovering from a brutal financial meltdown, this rate cut is a gamble. Cheaper borrowing could help businesses and consumers, but it also risks fueling inflation if not managed carefully. It’s a sign that policymakers are shifting from crisis control to growth mode—but whether it works depends on how inflation and global conditions play out.
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