Iran central bank to modify borrowing rates

The building of Central Bank of Iran (CBI)

The building of Central Bank of Iran (CBI)

Iran’s central bank plans to adjust borrowing rates with the country’s falling inflation in the next calendar year starting on March 21.

“The Central Bank [of Iran] (CBI) is seriously determined to adjust bank interest rates with inflation rate falling developments and other economic parameters so that there would be a logical consistency between borrowing rates and the inflation rate,” CBI governor, Valiollah Seif, said on Tuesday.

He said that the CBI’s decision is aimed at preventing money market speculators from using interest rates in “unconstructive competition.”

“Unconstructive competition between banks in the interest rate would harm both the country’s economy and banking industry,” he added.

Meanwhile, President Hassan Rouhani said his administration has managed to slash Iran’s runaway inflation from a record 40% to below 16%. Rouhani took office in August 2013.

“[In] a country that experienced negative growth for eight consecutive years (2005-2013), we are hopefully witnessing positive growth in all sectors today,” said Rouhani.

By Press TV