Central Bank of Iran considers a dramatic increase in loan interest rates
[88293] Central Bank of Iran considers a dramatic increase in loan interest rates
Reports of an intention to raise interest rates in Iranian banks by up to 10%, which is expected to significantly increase the cost of loans for the public.
Central Bank of Iran considers a dramatic increase in loan interest rates
Increasing reports from Iranian media outlets point to an intention by the Central Bank to raise interest rates on deposits and loans. According to the reports, the move may be carried out in two phases of 5% each, or alternatively, in a one-time increase of 10%.
Fars News Agency, which reported on the issue by citing آخرین خبر (sometimes identified with a conservative-establishment line), notes that although the official interest rate on loans currently stands at 23%, in practice, customers are forced to pay a real interest rate of 33% to 35%. This indicates a significant gap between the Central Bank's official guidelines and the reality on the ground.
On the other hand, آخرین خبر quotes Vahid Majad, Deputy for Monetary Policy at the Central Bank, who qualified the remarks and claimed that the re-examination of interest rates does not constitute a certain signal of their increase, but rather a routine professional move.
The news was distributed simultaneously by several other channels, including خبر فوری جنگ ایران and اقتصاد امروز, which confirmed the emerging increase plan. Economic experts see this step as an attempt by the Iranian banking system to cope with soaring inflation and monetary pressures on the local currency.