*Economic Update | Monetary Policy Announcement | 22 May 2025* * The Monetary Policy Board of the CBSL, at its meeting held on 21st May 2025, decided to *reduce the Overnight Policy Rate (OPR) by 25bps to 7.75%.* * The decision to *reduce policy rate by 25bps is contrary to our view*, as FCR predicted an *80% probability for CBSL to maintain rates and 20% probability to reduce rates from their current levels* *Find FCR Pre-policy Analysis Full Report-* https://firstcapital.lk/wp-content/uploads/2025/05/Pre-Policy-Analysis-May-2025.pdf *CBSL Monetary Policy Announcement-* https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20250522_Monetary_Policy_Review_No_3_2025_e_Mw8b9.pdf *First Capital Research*