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Sri Lanka jolts markets with outsized 100-bp rate hike to counter Gulf crisis
Channel News Asia ^ | 26 May 2026

Posted on 05/25/2026 9:05:32 PM PDT by nickcarraway

Sri Lanka's central bank stunned markets by raising its benchmark policy rate by an outsized 100 basis points on Tuesday, as policymakers scrambled to stem inflation and support a currency buckling under soaring energy prices.

The Central Bank of Sri Lanka CBSL) raised the overnight policy rate to 8.75 per cent from 7.75 per cent, blaming higher inflation and a depreciating rupee due to the U.S.-Israeli war with Iran.

Seven out of a dozen economists and analysts polled by Reuters had forecast only a 25 basis-point or slightly higher change to the rate, citing the deepening impact on foreign reserves from the conflict.

(Excerpt) Read more at channelnewsasia.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: centralbank; money; srilanka
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1 posted on 05/25/2026 9:05:32 PM PDT by nickcarraway
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To: nickcarraway
Holders of Sri Lankan 10-year treasuries, beware!

Regards,

2 posted on 05/25/2026 11:32:42 PM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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Interesting way to spell percent. I think that AI translation needs new training.


3 posted on 05/26/2026 4:08:00 AM PDT by Vermont Lt
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