Home
An expert comments on the Iraqi Central Bank’s decision to reduce interest rates: It is incomprehensible
October 27, 2024
Baghdad/Iraq Observer
Economist Ziad Al-Hashemi commented today, Sunday, on the measures of the Central Bank of Iraq to reduce interest rates.
Al-Hashemi said in a tweet via his account on the He added:
“The major central banks around the world have reduced interest rates after inflation rates fell from 10% to below 2%, confirming the success of the high interest rates followed by the major central banks over the past two years in curbing inflation.” He continued:
“As for (in Iraq), the previous interest rates of 7.5% did not succeed in (withdrawing the hoarded cash liquidity) outside the banking system, which exceeds 80% of the mass of the dinar exported, and
it also did not help in reducing (high inflation) which the citizen feels with The continued high prices of goods (which the Ministry of Planning is trying to cover up by issuing illogical data indicating low inflation rates).” Al-Hashemi pointed out that
“despite the failure to achieve the required goals of high interest, and the absence of an urgent and necessary economic need to reduce interest, and the absence of fears that the Iraqi economy will fall into recession, and
there is no need to encourage (already high) spending, the Iraqi Central Bank decided suddenly and without Obvious reasons for lowering interest rates.” He stated that
“such incomprehensible decisions remind and confirm that there is clear randomness in the decision-making process of the Central Bank’s management, as
its decisions depend in many of them on the method of trial and error, reactions, or imitation and imitation of the decisions of others without study, and this is a clear and diagnosed weakness.” In the way this institution works.” He continued by saying:
“The decision to reduce interest rates taken by the Iraqi Central Bank is just a (formal measure) for no reason.
It came to create an (illusory impression) among the public of the success of the Central Bank’s measures, just as the measures of the Federal Reserve and the Bank of England succeeded in reducing inflation, and this is far from the truth".
https://observeriraq.net/خبير-اقتصادي-يعلق-حول-إجراءات-البنك-ال/
October 27, 2024
Baghdad/Iraq Observer
Economist Ziad Al-Hashemi commented today, Sunday, on the measures of the Central Bank of Iraq to reduce interest rates.
Al-Hashemi said in a tweet via his account on the He added:
“The major central banks around the world have reduced interest rates after inflation rates fell from 10% to below 2%, confirming the success of the high interest rates followed by the major central banks over the past two years in curbing inflation.” He continued:
“As for (in Iraq), the previous interest rates of 7.5% did not succeed in (withdrawing the hoarded cash liquidity) outside the banking system, which exceeds 80% of the mass of the dinar exported, and
it also did not help in reducing (high inflation) which the citizen feels with The continued high prices of goods (which the Ministry of Planning is trying to cover up by issuing illogical data indicating low inflation rates).” Al-Hashemi pointed out that
“despite the failure to achieve the required goals of high interest, and the absence of an urgent and necessary economic need to reduce interest, and the absence of fears that the Iraqi economy will fall into recession, and
there is no need to encourage (already high) spending, the Iraqi Central Bank decided suddenly and without Obvious reasons for lowering interest rates.” He stated that
“such incomprehensible decisions remind and confirm that there is clear randomness in the decision-making process of the Central Bank’s management, as
its decisions depend in many of them on the method of trial and error, reactions, or imitation and imitation of the decisions of others without study, and this is a clear and diagnosed weakness.” In the way this institution works.” He continued by saying:
“The decision to reduce interest rates taken by the Iraqi Central Bank is just a (formal measure) for no reason.
It came to create an (illusory impression) among the public of the success of the Central Bank’s measures, just as the measures of the Federal Reserve and the Bank of England succeeded in reducing inflation, and this is far from the truth".
https://observeriraq.net/خبير-اقتصادي-يعلق-حول-إجراءات-البنك-ال/
