Iran not to increase deposit rates

Iran Materials 2 June 2011 10:22 (UTC +04:00)

Iran will not increase interest rates for deposits, Seyyed Kazem Delkhosh, a member of High Council of Money and Credit, said here on Wednesday-MNA reports.

It is while Hamshahri newspaper had reported that Iran's Central Bank plans to increase interest rates for deposits in a bid to control fluctuations in the gold and foreign-currency markets.

A report by the bank to increase deposit rates will be submitted to the High Council of Money and Credit, the Tehran-based newspaper said, citing central bank governor Mahmoud Bahmani.

A higher rate will attract liquidity to banks, Bahmani told the newspaper. He added that a large portion of the $300 billion in liquidity will be directed toward different parts of the economy without an increase in inflation, the newspaper said.

For the current Iranian calendar year starting March 21, the three-month deposit rate is 6 percent, the 9-month rate is 8 percent, and rate for less than a year is 10 percent, the newspaper said.

The rates for 1-, 2-, 3-, 4-, and 5-year deposits are 12.5 percent, 13 percent, 14 percent, 14.5 percent and 15 percent respectively.