Iraq to Slash Interest Rates starting January 4th 2009.
Iraq’s central bank has decided to slash interest rates by one percentage point to 14 per cent starting January 4.
The move comes in order to boost growth dented by sliding oil prices as inflation falls, the bank said.
“Owing to the fall of consumer price index in November and seeking to boost gross domestic product (GDP) … the Iraqi central bank decided to cut rates to 14pc from 15pc, starting from January 4,” a bank statement said.
Iraq’s core inflation fell to an annual 12.7pc rate last month, from 13.6pc in October.
The IMF said last week that economic activity had picked up in Iraq as violence falls, but that the steep fall in oil prices had worsened its fiscal outlook. It did not give figures for GDP growth.