The Prime Minister’s Advisor for Economic Affairs, Mazhar Muhammad Salih, said that the Central Bank’s decision to reduce interest rates to 5.5% encourages lending.
Mazhar Muhammad Salih said in an interview followed by Al-Maalouma Agency, “The Central Bank’s process of reducing interest rates to 5.5% represents an expansionary policy, because it is assumed that when this rate is reduced, all banks will do the same, whether on loans or deposits.”
He pointed out that “in terms of deposits, this decision does not encourage people to put their money in the bank, but it encourages lending.”
He pointed out that “banks have a lot of surpluses, and they are encouraged to grant more credit.”
