Minister: Government discussing bank interest rate cut

Tehran, Dec 20, IRNA – Minister of Economic Affairs and Finance said talks are underway in the government to reduce the bank interest rates expressing the hope that soon a decision will be taken in this regard.
Speaking to IRNA, Ali Tayebnia said given the remarkable decrease in inflation rate in the past year from 40% to 17% it is expected that in the money market bank interest rate will drop naturally.

Of course, he added, this does not mean that the government is intended to make a decision for compulsory reduction rather by using economic tools and policies efforts will be made to reach a compromise between the interest rate and the realities of the society.

He said the interest rate governing over the society is not compatible with the realities of the society and conditions in the society necessitate that in a near future reduction in the interest rate will be witnessed both for deposits and facilities.

Tayebnia further remarked that in the past the Money and Credit Council made a decision and set the interest rate at 22% for one-year deposits, adding that the trend will continue by the yearend.

Asked if the Council will set a specific figure for interest rate, the minister said this will be contrary to economic and religious rules and no interest rate can be set imperatively.

In reply to a question on the call of some Majlis deputies for a cut in US dollar rate from 28500 rials (per dollar) in the next year budget with regard to the drop of oil price, Tayebnia said the figure was proper and in conformity with economic realities of the society, adding that it will not create commotion in the market.

In addition, he said, the figure has a limited difference with the pen market rate and hoped that with measures to be taken the rate in the open market will come closer to the exchange rate set by the government.

By IRNA

 

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