Monetary Management and Financial Intermediation

The Monetary Policy Committee (MPC) maintained a status quo on the policy repo rate between May 2020 and February 2022 after implementing a 115 basis points (bps) reduction between March 2020 and May 2020.

Developments in the G-sec Market

• After remaining steady through 2020 and 2021, the yield on the 10-year government bond rose in 2022.

Banking Sector

• Consequently, the asset quality of SCBs (Scheduled Commercial Banks) has been improving steadily over the years across all major sectors.
• The GNPA ratio has decreased from 8.2 per cent in March 2020 to a seven year low of 5.0 per cent in ....