Longer-Term Deposits Could Supplant Rate Hikes

Amid months-long speculations that the Central Bank of Iran may be compelled to increase bank interest rates again to offset some of the effects of a depreciating national currency, a senior banker has proposed the revival of longer deposit contracts to replace potential interest rate hikes.
“I find it unlikely that increasing bank interest rates will be possible under the current circumstances because the resources and loan allocation conditions of the banks are not suitable for an interest rate hike,” Kourosh Parvizian, the head of the Association of Private Banks and Credit Institutions, told Fars News website.