Question:
The primary goal of the Central Bank of Sri Lanka in the conduct of its monetary policy at present is
(1) to stabilize inflation at mid single digit over the medium term.
(2) to maintain the external value of the rupee at a stable level.
(3) to facilitate the government in budget deficit financing.
(4) to achieve a sustainable economic growth.
(5) to reduce the burden of public debt.
Correct Answer:
(1)
Answer Explanation:
Under the Flexible Inflation Targeting (FIT) framework adopted by the Central Bank of Sri Lanka, its primary and overriding monetary policy objective is to maintain economic and price stability by keeping inflation stabilized at mid-single-digit levels (around 4-6%) over the medium term.
Topic: Monetary Policy Year: 2017
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