The SBV will lower bank interest rates by another 1% beginning on July 1.
| Interest rates lowered |
The decision, issued on June 29 by the Governor of the SBV set new rates to replace the ones issued in Resolution 1196 on June 8, 2012.
According to the SBV, the capital reallocation interest rate will be adjusted to an annual rate of 10%, while rediscount rates will come down to 8%.
Inter-bank overnight interest rates will go to 11%.
Loans to offset capital shortage of the State bank will also drop to 11% per year.
This is the fifth time SBV has lowered key interest rates this year.
The SBV stated that it may further lower interest because inflation has come under control and demand has increased.