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The Central Bank of Iran (CBI) is unable to rigorously implement its monetary policy as a number of bank reform laws have stalled in parliament. It’s therefore failed to keep interest rates at around the 15% mark set by its Money and Credit Council (MCC) in June.
The short-term interbank rate has risen from 16% to 21% Gholam Hassan-Taghi Netaj, the head of the local Bank Ghavamin, said this week.
This partially reverses the CBI’s success in bringing down the rate from 29% in March 2015, in line with a drop in inflation to 11.9% in the last Iranian year (to March 2016). Political interference in the banking sector has made the CBI’s task of pushing these rates down even more difficult. (CONTINUED - 366 WORDS)