This news article is published by Myanmar Times.

The Central Bank of Myanmar (CBM) may consider reducing interest rates to better align with high inflation rates should the need occur, vice governor U Soe Min said at the Pyidaungsu Hluttaw on February 10.

“When compared with other ASEAN countries, the interest rates in Myanmar are much higher,” said Daw Cho Cho, an MP from Oktwin township constituency.

Some MPs pointed out that lending rates should be reduced to make loans more affordable for local businesses. They added that easier access to funding would facilitate business growth and make local companies more competitive both domestically and internationally.

U Soe Min replied that while interest rate policies helped to drive the economies of financially-developed countries, Myanmar’s economy has yet to reach the same level. 

As such, local interest rates will be adjusted when the time is right and the economy better prepared. “For example, lowering interest rates at this time may not help the economy but increase non-performing loans, contribute to inflation, and destabilise the economy. It’s important to take these points into account,” he said.

U Soe Min had previously said in previous Hluttaw sessions that the CBM would not reduce interest rates as at current levels, the rates were set within a reasonable range. – Translated