Iran Looks To ‘Normalize’ Economy

As Iran prepares to join the international financial community with the expected lifting of sanctions, the authorities are mulling over new policy measures aimed at boosting investment and reviving the economy.

Valiollah Seif, Governor of Iran’s Central Bank (CBI) says that while the bank’s Money and Credit Council (MCC) has laid the groundwork for further cuts in interest rates, this would be done only in consideration of the rate of inflation and market conditions.

This comes just months after the MCC cut the ceiling rate for one year deposits from 22% to 20%, and reduced the maximum lending rate to 24% from 28% (MEES, 8 May), a move that caused much debate among the country’s leading economic experts. While some denounced the cuts on the grounds that they could stoke inflation, others claimed it was not enough to boost business lending, and stimulate the economy. (CONTINUED - 757 WORDS)