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Last updated: 10:53:07 AM GMT(+03) Thursday, 07, March, 2013
 
 

Central Bank of Yemen to cut interest rates again

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 Yemen Post Staff
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Mohammed Sayani, Yemen Central Bank Deputy Governor confirmed on Tuesday interest rates will cut again this month, March to meet Yemen monetary plan.
Sayani explained the Central Bank will monitor carefully economic indicators to see how the cut will manifest throughout the economy and the banking sector.
Yemen Central Bank already trimmed its deposit rate by two points to 18 back in October 2012, less than six months ago.
Interest rates are now at their lowest in three years, pre-revolution era, proof the impoverished nation is slowly absorbing two years of widespread instability.
With a reduction of three percent, Yemen deposit rate now stands at 15%.
Sayani told reporters the Central Bank will soon publish a report on Yemen's new monetary policy and economic outlooks.
Central Bank’s Governor Mohammed Awadh bin Humam explained in February when interest rates on certificates of deposit reached an unprecedented low of 15%, against 20% in 2011, is a clear sign the economy has stabilized. He went on stressing the Central Bank will continue to encourage the banking sector to expand their investment exposure in Yemen through low interest rate, the only sure way to promote and boost economic growth.
Mohammed Abbas an economist in London noted that whenever more capital is made available to entrepreneurs and investors in a market growth will occur.

 

 

 

 

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