Hemmati signals interest rate cuts

Financial Tribune – Governor of the Central Bank of Iran Abdolnasser Hemmati has announced the bank’s decision to alter the liquidity structure by curbing money supply and lowering bank rates.

According to Fars News Agency, Hemmati made the announcement this week in a talk with reporters and said the move marks a major shift in CBI monetary policy.

“Our goal is to change the liquidity structure. The main reasons for the rise in money supply are (high) deposit interests and the multiplier effect. We must reduce (the two variants) and increase the monetary base.”

Elaborating his point further, he said, “There is little money in the hands of the people and if we can make this change we can boost production.”