JamejamOnline.ir

CBI head Mahmoud Bahmani said that the bank collected "bonds and traveler checks with no backing" to reduce "liquidity growth rate from 43 percent to 15.9 percent in 2008 and then to 6.5 percent in July this year".

President Mahmoud Ahmadinejad's economic policies came under heavy criticism in his first term for raising liquidity, which consequently triggered mounting inflation.

Bahmani said the CBI decided to approve a 17.5 percent interest rate for 5-year deposits for the private banks.

He also noted that the bank assesses the inflation rate with the use of the prices of 395 goods and services in Iran's urban areas.

CBI chief announced in August that the annual rate of inflation on a point-to-point basis has slipped down to 14 percent form 29.5.

"The point-to-point inflation, which had reached 29.5 percent last September has now [in July] dropped to 13.9 or 14 percent," Bahmani said.

This is while CBI declared in early July that the inflation rate in the twelve months ending May 22 had dropped to 22.5 percent.