The Central Bank of Myanmar (CBM) will adjust the interest rates to manage the macro economy, Dr Lin Aung, Deputy Governor 2 of the CBM addressed at the 22nd SAC’s press conference.
“The developed and developing countries have been controlling the interest rates to reduce the inflation from May 2022. Inflation is rising in the country. The consumer prices went up not because of the minimum wage increase and high demand, but because of Kyat depreciation in the forex market, high import value, widening trade deficit, foreign currency demand and increasing consumer price index. Higher interest rates tend to negatively affect the economic growth of the State,” Deputy Governor 2 Dr Lin Aung emphasized.
The banking operations recovered in late October 2022. With a view to controlling inflation indirectly, the CBM raised the minimum reserve requirement ratio of local currency from 3 to 3.5 per cent in May 2023.
Furthermore, the banks also pay interest on excess reserve balances in October 2022 to facilitate banking operations. — TWA/EM
