Myanmar Banks Association announced that the interest rate for all its deposit accounts will increase from 6 to 8 per cent

The Myanmar Banks Association says the interest rate for all its deposit accounts will increase from 6 to 8 per cent from tomorrow, Sunday. 

The interest rates for other deposits remain unchanged. Private banks will calculate the interest rate for call deposits on a daily basis and add the interest rate to the total deposit every three months. 

In October last year some private banks reduced the interest rate for the call deposits above Ks10 million from 8 to 6 per cent and 4 per cent for below Ks10 million. 

The Central Bank of Myanmar said at the time that reducing interest rates for call deposits may have no negative impact on banks. 

The central bank has not fixed interest rates for loans and call deposits. Saving deposits and fixed deposits account for about 80 per cent of the total deposits while the current account deposits represent 13 per cent, according to the central bank. The central bank said it fixed at least an 8 per cent interest rate for saving deposits and fixed deposits and had no plan to reduce the rate.

(Eleven Media Group: http://elevenmyanmar.com/business/11802 )

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