Wednesday, July 11, 2012 -
Tajikistan’s central bank sliced the interest rate of 6.8 percent on Wednesday in response to slowing inflation.
The rate is the lowest ever recorded in Central Asia’s poorest country.
The rate was previously fixed at 8.0 percent, and the drop in the rate comes into effect immediately, the Reuters news agency reported.
Borrowing also has been lowered, to a level mirroring the period following the global financial crisis in 2008-2009.
“The change was introduced because of a decrease in inflationary pressure and outside influences, as well as with the aim of providing an effective monetary and credit policy,” Reuters quoted the central bank as saying in a statement.
The Tajik economy has recently suffered inflation rates as high as 6.9 percent, recorded in May 2011, but has since recovered to mark a drop in inflation to 2.3 percent in December 2011.