Interbank Interest Rate at 9-Month Low

Interest rates have been on a steady decline at the interbank market in recent months to reach 18.49% as of June 3, the lowest in nine months.
That was down from 19.24% registered almost a week before. Prior to that interbank rate vacillated between 19.56-19.9% from mid-February to mid-May, according to data published by the Central Bank of Iran.  
The decline in interbank rates is due to CBI’s policy to contract the supply of money at the interbank market over the past two weeks. The CBI refused to give the so-called “structured loans” to applicant banks, perceiving that they have sufficient liquidity. This caused banks to lend credits to each other at rates below the interest rate ceiling, a phenomenon seen as the main reason behind the decline in the interest rate at the interbank market, according to the Persian Economic website Eqtesad News.