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Iran Inflation at 25-Year Low May Spur Rate Cut to Boost Growth

  • Price growth data comes as banks lower 1-year deposit rate
  • Investment environment boosted by lifting of nuclear sanctions
President of Iran Hassan Rouhani.

President of Iran Hassan Rouhani.

Photographer: Fatemeh Bahrami/Anadolu Agency via Getty Images
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Iranian inflation eased into single digits for the first time in a quarter century, delivering on a commitment made by President Hassan Rouhani and creating room to lower borrowing costs that have stymied growth.

The annual inflation rate fell to 9.5 percent from 10.2 percent in the Iranian calendar month ended June 20, the official Islamic Republic News Agency cited Vice President Mohammad Bagher Nobakht as saying on Tuesday. Banks including the state-run Bank Melli Iran reduced their one-year deposit rate to 15 percent from 18 percent.