Cambodia Decides to Keep Reserve Rate at 12 Per Cent
The National Bank of Cambodia (NBC) decided not to raise the reserve requirement rate for commercial banks from the current 12 per cent to 16 per cent although the country's inflation has gradually increased, Nguon Sokha, NBC's director general, said yesterday. "After the meeting of the NBC's monetary board chaired by the Governor Chea Chanto, the board decided to keep the reserve rate at the existing rate -- 12 per cent," she told Xinhua. "The decision is to help the country to achieve its high growth of economy at around 7 to 8 per cent this year." Sokha said the board agreed that the inflation has gradually increased since earlier this year, but it's still controllable. "The country's inflation this year is forecast at around 6.5 per cent, it's still manageable and it is in line with the forecast of the International Monetary Fund," she said. Earlier this month, the NBC announced that it would consider increasing the reserve rate to 16 percent to curb inflationary pressures and to reduce liquidity in the economy.
