CBM set to reduce interest rates if needed
The Central Bank of Myanmar (CBM) may consider reducing interest rates to better align with high inflation rates should the need occur.
The current bank interest rate is 10percent while the minimum deposit rate is set at 8pc and maximum secured lending rate at 13pc.
Some MPs pointed out that lending rates should be reduced to make loans more affordable for local businesses. They added that easier access to funding would facilitate business growth and make local companies more competitive both domestically and internationally.
U Soe Min said that while interest rate policies helped to drive the economies of financially-developed countries, Myanmar’s economy has yet to reach the same level. For example, lowering interest rates at this time may not help the economy but increase non-performing loans, contribute to inflation, and destabilise the economy. It’s important to take these points into account.
Vice governor U Soe Min had previously said in previous Hluttaw sessions that the CBM would not reduce interest rates as at current levels, the rates were set within a reasonable range.
Source: Myanmar Times
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