CBM to adjust interest rate on macroeconomics

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