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FINANCIAL NEWS
Iraq’s core inflation falls to 3.4% in February
18 Apr 2010
(MENAFN) An official at the Central Bank of Iraq said that Iraq’s core inflation, which excludes fuel consumption, continued to slow in February, dropping to an annual 3.4 percent rate in February from 3.7 percent in January, Reuters reported.
Subdued inflation allowed the bank to drop its key policy rate by 100 basis points to 6 percent this month, although the rate is largely symbolic in an economy emerging from war and still largely disconnected from the global financial system.
The central bank said when it cut the policy rate at the start of April that it hoped to encourage commercial banks to increase lending to boost economic growth in the broader economy.
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