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State Bank Cuts Interest Rate by 1.5% in First Reduction in Four Years
The State Bank has cut the interest rate by 1.5%, bringing it down to 20.5% for the first time in four years. This decision comes as inflation shows significant improvement.
ND
by News Desk
2024-06-10
State Bank Cuts Interest Rate by 1.5% in First Reduction in Four Years

The State Bank has announced a reduction in the interest rate by 150 basis points, lowering it from 22 percent to 20.5 percent. This decision marks the first interest rate cut in the country in four years.

 

According to the American magazine Bloomberg, this reduction is a critical step aimed at stimulating economic activity and providing relief to borrowers.

 

The State Bank's monetary policy committee made this decision during their meeting today. The committee observed that inflation has substantially decreased since February, with May's figures surpassing expectations.

 

"The reduction in the interest rate reflects our confidence in the improved inflation outlook," stated the State Bank. The interest rate had been maintained at 22 percent since June 2023, making this adjustment a notable shift in monetary policy.

 

Economic analysts are closely watching the effects of this reduction on the broader economy, particularly in terms of borrowing and investment.
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inflation

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