CBM has no plan to revise interest rates

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Pyidaungsu Hluttaw being convened in Nay Pyi Taw. Photo: MNA

The Central Bank of Myanmar (CBM) has no plans to reduce the current interest rates on bank deposits, loans and government treasury bonds, said U Soe Min, Deputy Governor of CBM, at the Pyidaungsu Hluttaw yesterday.
He made the remark in his answer to a query by MP Dr. Thet Thet Khaing about whether the interest rate of the government treasury bonds is rising due to a rate set by the Central Bank of Myanmar.
U Soe Min said businesses have the opportunity to negotiate with banks to reduce interest rates for borrowings under 13 per cent.
Deputy Governor U Soe Min said that a budget deficiency in the Union Government was funded by selling treasury bonds to the Central Bank of Myanmar, and that weakened the social policy to control the inflation rate.
He said the interest rate set by the Government and by the Central Bank for the Treasury Bill and Treasury Bond Auction are different.
He said the interest rate for the Government Treasury Bond for the 2016-2017 Financial Year was 7 per cent for 3 months, 8.4 per cent for 6 months, and 8.8 per cent for one year.
The Central Bank’s aim for the fiscal policy is to stabilise the domestic market and the inflation rate. He said the interest rate is important for a stable fiscal policy.
Currently, Myanmar’s inflation rate has stabilised at 4.47pc. That’s down from 6.8pc in 2016-17 and 10pc in 2015-16. According to forecasts made by the ASEAN+3 Macroeconomic Research Office (AMRO), inflation in 2018-19 could rise to 5.5pc.
At the yesterday meeting, the Speaker of the Pyidaungsu Hluttaw announced that the Hluttaw has approved new appointments for minister level positions in various regions. Dr. Saw Nyo Win is appointed as the Bago Region Minister for Natural Resources, Forestry and Environmental Conservation, Daw Nyunt Nyunt Htay is appointed as the Bago Region Minister for Development Affairs and Social Welfare, and U Tin Maung Win is appointed as the Ayeyawady Region Minister for Agriculture, Livestock, Natural Resources and Environmental Conservation.
Next, U Steven from Kengtung Constituency read the Bill for amending the Drugs and Psychotropic Drugs Law sent back from the President’s Office. Speaker Mahn Win Khaing Than announced for MPs interested in discussing the Bill to sign their names in a list.
Next, the Speaker sought approval for the Myanmar Hluttaw Bill that has two separate views from the two Hluttaws.

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