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# Are interest rates still too high?
- URL: https://www.examiner.media/are-interest-rates-still-too-high/
- Published: 2025-11-14T07:28:38.000Z
- Updated: 2025-11-21T07:27:22.000Z
- Author: The Examiner
- Tags: chart, maintag-Chart, Week-11-2025

![](https://storage.ghost.io/c/56/2b/562b4f8e-9dd1-43bb-a213-bc1615650661/content/images/2025/11/Untitled-design--47--1.png)

Source: Central Bank

The Central Bank and government agreed to a 5% inflation target in October 2023\. The Central Bank undershot that target since March 2024\. Since interest rates are the primary tool for managing inflation, should the Central Bank have reduced interest rates more? Or collected more in reserves, depreciating the rupee and thereby also encouraging inflation? Read the central bank's last explanation [here](https://www.cbsl.gov.lk/sites/default/files/cbslweb%5Fdocuments/monetary%5Fpolicy/report%5Fon%5Fdeviation%5Fof%5Finflation%5Ftarget%5FQ3%5Fand%5FQ4%5F2024%5Fe.pdf?ref=examiner.media).