Iraq cuts rates, lowers reserve requirements

Iraq cuts rates, lowers reserve requirements. (SUPPLIED)

Iraq's central bank slashed its base rate by 100 basis points to six per cent as of April 1 in reaction to subdued inflation and to boost bank lending, senior advisors at the bank said yesterday. The bank's website said that the rate cut – the first in nine months – was effective as of April 3. The bank has also cut banks' reserve requirements to 20 per cent from 25 per cent, a central bank advisor said. The rate move reflects the bank's policy of keeping real interest rates two points above core inflation, officials said.

 

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