The Central Bank’s Monetary Board has decided to keep the policy rates which decide the interest rates of commercial banks unchanged between 6.50 to 8.00 percent in April.

The Central Bank has stated that the decrease in borrowings by the government sector from the banking system has provided the opportunity for the private sector to borrow more.

Recently, Central Bank Governor Ajith Nivard Cabraal had said that there is no necessity to reduce interest rates for some time since they had already been reduced considerably.

The interest rates of commercial banks depend on the Central Bank’s policy interest rates and hence when the Central Bank policy interest rates dip or rise it reflects on the commercial bank interest rates as well.

However, there were criticisms recently that though the Central Bank had reduced its policy interest rates the commercial banks had not reduced their rates comparatively.

But responding to this criticism, Central Bank Governor Ajith Nivard Cabraal told AdaderanaBiz recently that he was satisfied with the reduction of interest rates by the commercial banks.