Higher interest rates from today on three transactions

Higher interest rates on three transactions announced recently will come into force from today, the Central Bank said.

Commencing 14 March, CBSL stiupulated maximum interest rates that can be charged by licensed commercial banks and licensed specialised banks for the credit card advances, pre-arranged temporary overdrafts and pawning advances.

The rates are as follows:

1. 20% per annum on credit card advances commencing from the next billing cycle

2. 18% per annum on pre-arranged temporary overdrafts

3. 12% per annum on the money lent for pawning advances collateralised by personal articles made of gold accepted as a pledge, for all new pawning advances and existing pawning facilities that are renewed

The hike was first announced on 4 March following the Monetary Policy Review after which policy rates were hiked sharply by 100 basis points.

CBSL said it has adopted monetary policy tightening measures in the recent past including an increase of policy interest rates to dampen the possible build-up of underlying demand pressures in the economy, which would, in turn, help ease pressures in the external sector, thus promoting greater macroeconomic stability.

CBSL said new rates for the three specified transactions are after considering the increase in overall market interest rates.