Iran's interbank market rate remained unchanged at 24% on October 9, holding at the policy level for the third consecutive week as the Central Bank maintains liquidity control measures, Tahlil Bazar reported on October 9.

According to money market analysts, stabilising the interbank rate under conditions of monetary base and liquidity growth signals relative resource equilibrium in the short term to economic actors. However, possible changes in macro variables and facility demand could put additional pressure on this rate in coming months.

The interbank interest rate for the week ending October 7 stayed at 24% without change from the previous week, a trend that continues in line with Central Bank policies to control liquidity and prevent inflationary pressure.

A review of other rates in the money market shows that the gap between base deposit rates, borrowing rates and repurchase agreement rates with the ceiling approved by the Money and Credit Council has also been maintained.

During this period, the minimum repurchase agreement rate amongst banks remained at 23%. The regular borrowing rate in all reports for this period equalled 24%, whilst the regular deposit rate was fixed at 17%.

These figures indicate continued discipline in money market operational rates and movement within the interest rate corridor set by the monetary policymaker.

Weekly comparison shows that the interbank rate has fluctuated around the 23.95% to 24% level from the week ending September 5 until now, and has not approached levels higher or lower than the policy range ceiling and floor.

This interest rate behaviour is described as the result of liquidity injection and absorption policies by the Central Bank, mainly through open market operations and management of banks' short-term borrowing.