Yemen cbank slashes key interest rate
Sanaa, February 7, 2013
Yemen's central bank cut its deposit rate, the key rate which it uses to adjust monetary policy, by 3 percentage points to 15 per cent, the bank said in a statement carried by state news agency Saba on Thursday.
The central bank last trimmed the rate, a benchmark for commercial banks taking deposits from their customers, in October, when there was a cut of 2 percentage points to 18 per cent as inflation came down to single digits and the Yemeni rial stabilised following political turmoil.
An International Monetary Fund official told Reuters last month that Yemen had room to gradually reduce interest rates in order to support economic recovery as inflation continued to decline.
The official inflation rate in Yemen, the poorest country in the Arabian Peninsula, spiralled as high as 25 per cent year-on-year in October 2011. It subsided to 5.5 per cent in November 2012, the latest central bank data show.
The Yemeni rial tumbled to about 243 to the US dollar in 2011 during a year of political unrest which led to the rise of al Qaeda militants and ultimately toppled President Ali Abdullah Saleh in February 2012. Some violence continues, but the currency has now stabilised around 215.
Yemen's economy should expand by around 4 per cent this year, the IMF has forecast, after it stabilised in 2012. It shrank 10.5 per cent in 2011, the first drop since the 1990 unification of the north and south of the country. – Reuters
More Finance & Capital Market Stories
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi
- SME funding focus for Abu Dhabi forum
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook