The Central Bank issuing a notice said the main objective of this decision was to accelerate monetary policy transmission through the financial sector, enabling licensed banks to reduce their interest rates on lending products in general and to SMEs in particular and thereby enhance credit flows to the real economy.
Accordingly, Hatton National Bank has reduced its 3-month fixed deposit rate to 9.5% from 10%. However, the bank has not yet reduced the current rate of 11%, charged for its 12-month fixed deposits. In addition, HNB said the bank has reduced its 6-month fixed deposit rate from 10.5 to% 10.25% and also 5-year deposit rate was reduced to 13% from 15%.
Meanwhile, Sampath Bank and the Commercial Bank have also reduced their deposit rates after the Central Bank directed banks and finance companies to cut deposit rates. Meanwhile, a senior official from National Savings Bank said that the bank is in the process of making a positive decision in this regard.