Business And Markets

CBI Won’t Raise Interest Rates

The Central Bank of Iran has no plan to increase deposit rates, the governor, Abdolnasser Hemmati, said in response to recent rumors about the likelihood of higher interest rates to help prop up the struggling economy, tame inflation and curb forex rates.
"Raising deposit rates is unlikely to work in light of the low supply [in the currency market], banks’ unstable balance sheets and the government’s increasing demand for funds. Under the circumstances the central bank would do better to reduce the inflation rate by using other methods," he said in a note on his Instagram account.
Earlier in the month the CBI said interbank rates had increased steadily in recent months after dropping as low as 8% in June. Some experts say the CBI was expected to raise interest rates  to help lenders access cheaper financial resources and by extension curb inflation to the set target. 


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