CBM plans to build an interest rate corridor between banks
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NP News - Oct 6
The Central Bank of Myanmar aims to develop a money market after it increases the current account balance to 2.50 percent from 2.25 percent and decreases the cash ratio to 0.5 percent from 0.75 percent in the minimum required reserves, according to the CBM’s 9/2022 Monetary Policy Committee meeting.
The central bank made this establishment to ease the possible net loss by the banks between excess cash and lack of executing the credit expansion.
“By this means, the cash held at the banks will be deposited at the central bank and will claim to reduce the CIC. Therefore, it is assumed that the inflation rate can be controlled to a certain extent,” the CBM statement said.
The central bank decided not to increase the interest rate for the time being regarding inflation.