Central Bank Governor Sunil Mendis says private sector members of the Monetary Board are not pushing to keep real interest rates negative

Central Bank Governor Sunil Mendis says private sector members of the Monetary Board are not pushing to keep real interest rates negative, and Board decisions are taken independently.

Central Bank Governor Sunil Mendis says private sector members of the Monetary Board are not pushing to keep real interest rates negative, and Board decisions are taken independently. Governor Mendis was responding to our story yesterday headlined ‘Speed Two’.

“Private sector members of the Monetary Board are not pushing to keep interests low,” Governor Mendis said. “Private sector chambers have made representation to keep the rates and spreads low.

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He said the Monetary Board members acted independently taking advice from a team of economists and even the private sector members acted independently in the overall best interests.

On the external front, apparel exports remained strong and inward remittances were also picking up.

Meanwhile aid flows were also strengthening the capital account, with the Indian credit line, a Japanese government loan coming in and supplier’s credit becoming available for petroleum.

Governor Mendis says stable oil prices were also improving the outlook