Iranian banks reduce annual interest rates by 2%
Tehran, Iran, Nov. 7
By Mehdi Sepahvand - Trend:
Iranian bankers in a meeting today decided to reduce the annual interest rate on loans to 18 percent.
The new decision will be adopted on November 22, Mehr news agency reported November 7.
The one-year interest rate used to be 20 percent.
Also, decision was made to reduce the annual inter-bank interest rate from 26 percent to 24.
However, other deposits (under one-year term) were not discussed and banks are free to act according to their own preferences regarding them.
President Hassan Rouhani has recently prepared an economic package to combat recession.
The package includes reducing the bank interest rate proportional to the inflation rate and supporting the domestic production.
Iran's economic inflation rate currently stands at 13.3 percent. It used to be over 40 percent when Rouhani came to office in 2013.