The Central Bank of Yemen nearly doubled the rate on certificates of deposit to 27 percent on September 19th, 2018, in an attempt to stabilize the riyal and curb soaring inflation following violent demonstrations in the government-held south. Yemen’s currency is under pressure since the start of a civil war in 2014. The central bank also raised the interest rate on government bonds to 17 percent. Interest Rate in Yemen averaged 15.37 percent from 1995 until 2019, reaching an all time high of 27 percent in September of 2018 and a record low of 10 percent in February of 1998.
Interest Rate in Yemen is expected to be 27.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Yemen to stand at 27.00 in 12 months time. In the long-term, the Yemen Interest Rate is projected to trend around 20.00 percent in 2020, according to our econometric models.