Banks re-price deposit rates more aggressively than lending rates

Tuesday, 17 October 2023 01:42 - - {{hitsCtrl.values.hits}}

The new deposit rates in the banking sector have fallen from 21.29% to 11.46% which is a 9.83% downward adjustment by August, according to charts.lk.

Its new lending rate has fallen only from 24.18% to 17.89%, where the downward adjustment is 6.29%. During the same period, the T-bill rates have fallen by 15.83%.

“CBSL expects a more aggressive downward adjustment of the lending rates by banks to boost the credit-driven economy. The economy was contracted by 11.5% and 3.1% for the first quarter of 2023,” charts.lk added.