29830
New Deposit Rate  Compatible With MCC Policy
Economy, Business And Markets

New Deposit Rate Compatible With MCC Policy

The decision on Saturday by senior bankers to lower deposit rates by two percentage points as of November 22 triggered reactions from analysts and economists demanding confirmation from the Central Bank of Iran.
Speaking in support of the decision, CBI vice governor for banking supervision affairs, Hamid Tehranfar, welcomed the move and considered it in line with an earlier decision by the Money and Credit Council – the highest monetary policymaker - in April that voted to cut deposit rates from 22% to 20%, according to remarks posted on the official website of the regulator.
On the reasons behind the inability of the CBI to bring deposit rates in line with inflation rate, the senior official said “As the inflation rate declines, deposit rates too should be adjusted accordingly. However, chronic structural problems coupled with unhealthy competition among lenders are the main deterrents to the process.”
He did not elaborate on the structural problems the overall economy is saddled with for years, which has effectively inhibited growth and led to extended recession. One primary liability often pointed out by prominent economists and experts is the "command economy" in which the state/government owns and controls close to 85% of the economy including everything from oil to tobacco.
The official stressed the regulator’s determination to continue to monitor commercial banks to ensure compliance with the new interest rates and said “Several cases of violation are under investigation in relevant departments within the CBI.”

Short URL : http://goo.gl/9u9MSc
  1. http://goo.gl/NgXHab
  • http://goo.gl/pnz3qh
  • http://goo.gl/kWlqWa
  • http://goo.gl/Eesr9f
  • http://goo.gl/W43hET

You can also read ...

FAO Forecasts Iran’s Cereal Output to Rise 12% in 2018
Despite autumn dryness, crop conditions recovered in Iran and...
Iran Housing Market Bracing for Double-Dip Recession: Aug-Sep 2018 Report
New data show property deals in Iran are on a downward...
Iran's Summer Box-Office Revenues Exceed $5 Million
Iran’s box-office revenues exceeded 610 billion rials ($5.19...
Hot Autumn for Tehran Stocks
Tehran stocks rose solidly on Sunday, recording another all...
Iran Privatization Organization's Gravest Dilemma: Volatile Forex Market
The gravest problem facing privatization in Iran is the...
SCI Puts Iran's YOY Inflation at 25.7%
The goods and services Consumer Price Index for the month...
Mobile Internet Services Get Costlier in Iran
Major mobile operators MTN-Irancell and Mobile...
Iran Agrifood Exports Rise 27% to Record High of $2.6 Billion
Around 2.94 million tons of agricultural and food products...

Trending

Googleplus