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Central Bank of Iran Again Raises Interbank Deposit Rate

Central Bank of Iran Again Raises Interbank Deposit Rate Central Bank of Iran Again Raises Interbank Deposit Rate

In bid to further narrow the rate spread in the interest rate corridor (IRC) the Central Bank of Iran announced that it would raise rates on interbank deposits by 1 percentage points to 13% starting today (Saturday). 
This comes after almost a week since the CBI increased the rate at which central bank takes deposits from banks, from the previously 10% to 12% now. 
The development is in line with CBI monetary policy to control inflation through open market operation and the IRC. 
IRC is a system for guiding short-term market interest rates towards the central bank target/policy rate. It consists of a rate at which the central bank lends to banks (typically an overnight lending rate) and a rate at which it takes deposits from them (deposit rate). 

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