The government has hinted at a further hike in interest rates on the demand of the International Monetary Fund (IMF).
The government sold treasury bills and borrowed 1570 billion from the banks. The government borrowed from banks at an interest rate of 21 percent. Currently, the prime interest rate is at a high of 20 percent.
According to the spokesperson of State Bank, the interest rate on loans increased by more than one percent. The next Monetary Policy Committee meeting will be held on April 4.
According to experts, the increase in the interest rate on the government debt is an indication of the increase in the policy rate in the future. Remember thatThe interest rate has also been demanded to increase further.
It should be noted that on March 2, State Bank3 percent has been increased, after which the interest rate has reached the highest level in the country’s history at 20 percent.
The State Bank has said in its ongoing statement that in the meeting of the State Bank’s Monetary Policy Committee, it was decided to increase the base interest rate by 3 percent keeping in mind the country’s economy.
In its statement, the State Bank said that the inflation rate has reached 31.5 percent on an annual basis in February 2023. Inflation has further increased due to recent monetary adjustments and exchange rate depreciation.