Iran’s CB hopes to tame inflation to 22%

Financial Tribune – Governor of Central Bank of Iran is hopeful that the inflation rate could be brought down to around 22% with the help of new monetary policies.

Speaking on state TV late Tuesday, Abdolnasser Hemmati pointed to the interbank interest rate as one key factor in inflation.

He noted that the interbank interest rate has been declining in the past months.

“Interbank rate now is 16.5%, which is an important sign of inflation… I am very hopeful that we control inflation rate around 20%-22%,” he said, arguing that a declining interbank rate should curb inflation.

Interbank rate is the rate of interest charged on short-term loans between lenders. Such loans mature in one week or less, the majority being overnight.