Central Bank of Myanmar (CBM) will adjust the interest rates to manage the macro economy, said its Deputy Governor during the 22nd SAC’s press conference.
“The developed and developing countries have been using the interest rates to reduce the inflation. Inflation is rising in the country too. The consumer prices went up not because of the minimum wage increase and high demand, but because of Kyat depreciation, causing high import value, widening trade deficit, foreign currency demand and increasing consumer price index. Higher interest rates tend to negatively affect the economic growth of the State,” said Dr Lin Aung.
With a view to controlling inflation indirectly, the CBM raised the minimum reserve requirement ratio of local currency from 3 to 3.5% in May 2023, tightening the money supply.