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TEHRAN, Jan. 25 (MNA) – President Mahmoud Ahmadinejad has agreed to a decision by the Money and Credit Council to increase interest on interest-bearing accounts to 21 percent which is a little above the inflation rate, Minister of Economic Affairs and Finance Shamseddin Hosseini announced on Wednesday. |
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Over the past few weeks, a wave of panic buying by Iranian households and small investors has swept gold and currency markets, and the cash floating around has thrown the markets into total disarray. On January 21, the Money and Credit Council decided to increase interest on interest-bearing accounts to 21 percent to encourage people to deposit their savings with banks to control the spiraling inflation. According to the central bank the inflation rate stands about 20.6 percent. However, commodity prices have been galloping up in recent days as gold and foreign currency prices have increased incredibly. |