Central Bank of Myanmar (CBM) has announced on April 27 that it will cut interest rates by another 1.5 percent and will be effective on May 1.

Starting from May 1, bank deposit rates will be reduced to a minimum of 5 percent and lending rates will not exceed 10 percent for collateralized loans but rates for unsecured loans will remain at 14.5 percent.

The CBM has cut 0.5 percent on March 12, 1 percent on March 24 and 1.5 percent on April 27 which made it total 3 percent within two months.

“As the Central Bank, we are making efforts to support the country’s economy by using monetary policy tools during this period. The main purpose of reduced interest rates is to enable more liquidity for businesses and we believe this will provide some support to businesses,’’ U Soe Min, Deputy Governor of the CBM gave a statement to The Myanmar Times.

Source: The Myanmar Times