Iran Central Bank urges for lower interest rates

Business Materials 22 June 2016 16:20 (UTC +04:00)

Baku, Azerbaijan, June 22

By Khalid Kazimov – Trend:

Governor of the Central Bank of Iran Valiollah Seif has called for lower banking interest rates as inflation rate in the country has dropped to single-digits.

Paying more than 13 percent on banking interest rates is not acceptable as the rate of inflation in Iran has dropped below 10 percent, Seif said, IRIB news agency reported June 22.

Earlier on June 21, Vice-President Mohammad Bagher Nobakht told parliament that the annual inflation rate in the country for the first time over the past 25 years has hit a single-digit, reaching 9.5 percent.

Meanwhile, Iranian bankers announced a decision to cut interest rates on short-term deposits.

Under the new decision, Iranian banks will pay 10-14 percent in interest rates to account holders on short-term deposits.

The bankers also agreed to lower interest rates on one-year deposits to 15 percent from 18 percent.

Iranian government is making efforts to reduce banking interest rates with an aim to give a boost to the country’s depressed economy.