CBY reduces benefit rate to 15%, as inflation settles at 5.8%
The Source: Mukalla/Hadramoutinfo/Saba.net - 7/2/2013
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The Central Bank of Yemen (CBY) approved Thursday to reduce the basic interest rate from 18% to 15% in light of the positive developments of the economic indicators in Yemen.
Governor of the CBY Mohammed Awadh bin Hammam explained to Saba that this move by the Bank came as a result of the economic and monetary developments indicators in the country, especially with respect to indicators of inflation, which stabilized at 5.8 percent during the fourth quarter of 2012 compared with 23 percent in 2011.
He emphasized that the decision to reduce the interest rate will have a positive impact in supporting the efforts of commercial banks in activating the financial intermediation and credit expansion.
Bin Hammam also explained that the reduction will have a positive effect in reducing the cost of products and services and will have a reflection on the prices of those goods, which will contribute to the stability of prices in the market.
He confirmed that the Central Bank will continue to monitor the economic developments in the country and will pursue monetary policies that support the economic growth expected in 2013.
Furthermore, bin Hammam revealed the improvement in Yemen's reserves of foreign exchange, which amounted to 6.2 billion dollars, compared to $ 4.5 billion dollars by the end of 2011.
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