TEHRAN, Iran, April 21
Trend:
It's unlikely that the Central Bank of Iran would reduce banks interest rates, former managing director of Saderat Bank Ahmad Hatami Yazd told Trend.
"In the current situation, the possibility of reducing bank's interest rates is very unlikely, even based on the Central Bank's announcement that banks should offer a 15-percent interest rate to long term deposits. However most of them do not follow this regulation, sticking to 20-percent interest rate or more," he said.
"For example Shahr Bank that is not a private bank (8 percent of it's share belongs to the municipality), pays a 20-percent interest rate to its customers," he added.
"The topic of changing bank's interest rates has started to come out on various websites from the start of the current Iranian year (started March 20,2020), although so far the Central Bank of Iran (CBI) has not issued any announcements, since the inflation rate is expected to increase and its unlikely that the interest rates would be reduced," he said.
"The current bank's interest rate that is even up to 20 percent in some banks, would have less value due to the inflation rate. It means the monetary value will reduce. So it's unlikely that the interest rate would be cut down," Yazd said.