Iran’s Lending Rates may Stay at 12 pct

TEHRAN (FNA)- Iranian government’s economic committee which draws up monetary policies has called for keeping bank lending rates at 12 percent.

The rate must be approved by President Mahmoud Ahmadinejad, who has called for low interest rates. A minister said higher rates would hurt job creation and stifle investment.

The rate ratified by the economic committee still needs President Ahmadinejad’s approval.

“An additional reduction in a decree by the president has not been ruled out,” the economic newspaper Donya-ye Eqtesad said.

Central Bank Governor Tahmasb Mazaheri said on Wednesday the rise in money supply had slowed since last year, and cited a policy to control cash supply further.