Bosnia And Herzegovina Interest Rate
The benchmark interest rate in Bosnia And Herzegovina was last recorded at 7 percent. Interest Rate in Bosnia And Herzegovina is reported by the Central Bank of Bosnia and Herzegovina. Historically, from 2009 until 2012, Bosnia And Herzegovina Interest Rate averaged 7.4 Percent reaching an all time high of 10.0 Percent in February of 2009 and a record low of 7.0 Percent in July of 2009. Central Bank of Bosnia and Herzegovina uses the currency board as the monetary policy tool. The currency board is based on the fixed exchange rate of EUR 1 to KM (convertible mark) 1.95583 and the policy of non-lending to any industry. As a result, the CBBH has no powers to monetize fiscal deficit and it does not act as the lender of last resort to assist in problems related to commercial banks’ liquidity.
However, the bank uses required reserves to influence monetary movements. In 2011, it began implementation of a reduced rate of 10 per cent on the maturity up to one year, while the rate applied to the base with the maturity over one year was not changed and remains at 7 percent. This page includes a chart with historical data for Bosnia And Herzegovina Interest Rate.