ID :
205479
Tue, 09/06/2011 - 11:09
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Shortlink :
https://oananews.org//node/205479
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Iran Mulling Increase in Interest Rates
TEHRAN (FNA)- Governor of the Central Bank of Iran Mahmoud Bahmani is due to ask the Council for Money and Credit - the highest decision making body on financial affairs - to increase the interest rates on savings.
Bahmani also stated that the current rate was set last year as the inflation rate stood at 12% which has meanwhile soared to 17%.
"In June we suggested a review of the interest rate but it was rejected because of the belief of the CMC members the inflation rate would remain low, but it did not happen," Bahmani said.
Economists believe the low interest rate of about 11% on short-term savings has caused uncontrolled and high fluctuations of gold - specially gold coin - prices in Iran, diverting huge amount of liquidity to the gold market.
Bahmani also stated that the current rate was set last year as the inflation rate stood at 12% which has meanwhile soared to 17%.
"In June we suggested a review of the interest rate but it was rejected because of the belief of the CMC members the inflation rate would remain low, but it did not happen," Bahmani said.
Economists believe the low interest rate of about 11% on short-term savings has caused uncontrolled and high fluctuations of gold - specially gold coin - prices in Iran, diverting huge amount of liquidity to the gold market.
