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Central Bank expects interest rate decrease

ITN News Editor
By ITN News Editor April 27, 2019 19:10

Central Bank expects interest rate decrease

The Central Bank expects that the interests given to small and medium scale enterprises will be decreased by about 200 basis points.

The Central Bank has taken several steps to provide loans to small and medium scale entrepreneurs by reducing loan ratios. It has reduced one day interest rates to improve liquidity in the market and to decrease statutory reserve rates. However the Central Bank has observed that the banks and financial institutions are charging higher interest rates when giving loans and giving high interest rates for deposits. Accordingly the relevant organizations have been requested to reduce interest rates on deposits.

The Central Bank has emphasized that the banks and nonbanking financial organizations have the ability to provide an additional interest upto 50 basis points for savings accounts for children below 18 years and for fixed deposits of senior citizens. The Central Bank has announced that those actions will reduce the high cost borne by the financial sector for funds.

ITN News Editor
By ITN News Editor April 27, 2019 19:10