Former Central Bank deputy Governor W.A. Wijewardena opines that that Friday’s rate hike by Central Bank was too short given the soaring inflation.

The hike is “too short given inflation running at 17% nationally,” Wijewardena tweeted. “It still induces commercial banks to borrow from CB and invest in TBills at 9.3-9.95%; why should CB create arbitraging and then complain about it,” Wijewardena queried.

“Like in Russia, there is need for doubling rates!,” he added.

CBSL’s historic rate hike double blow to economy: Econsult