Interbank Rates at Record High

Interbank rates continued to climb last week reaching the highest level in seven years. According to EcoIran Web TV, rates posted 0.75% growth during the week to February 23, to reach 23%. 
Interbank rates shot up in the past three weeks. The choppy rates two years ago were seen as one key factor leading to the collapse of the share market. Experts say low interest rates drive liquidity out of banks to the bourse and vice versa.
Market observers are of the opinion that the increase in rates, among other things, is indicative of the liquidity crunch in banks operating in the interbank market despite the central bank’s efforts to tame the uptrend, among other things, with expansionary policies.