Iraq cuts rates, lowers reserve requirements
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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