While the inflation rate has slipped to 15 %, many experts believe that the deposit interest rate cut must be done to get the liquidity out of the banking system. By Lausanne framework deal and the possibility of nuclear agreement the probability of cut in the banking interest rate has increased. However, the banking account situations will also matter for this decision. Currently most of the banks have high bad debts accounts that have declined their lending power.
The inflation rate was announced 0.6 percent for the last month of the year ended 20 Mar 2015. By considering this number the annual inflation rate will reach 14.3 percent which is unprecedented in the last four years. The government was successful in curbing the monthly inflation in the last year and luckily the global recession in the last six months has accelerated it.
- Almost 178 companies announced their next year forecasted EPS among which 106 had positive adjustments compared with current year (ending 20 Mar 2015). In the Petrochemical sector 14 companies had positive adjustments and only 4 companies forecasted less than current year’s return. In pharmaceutical sector 19 companies predicted more return and only one declined its return compared with current year. In construction sector, 8 companies had positive adjustments for their next year’s return and two companies reduced their forecasted profit. In banking sector 3 companies expected more return for next year and one company adjusted its return negatively. In automotive sector, 7 companies announced more EPS and 6 Companies announced less EPS than current year. With regard to the SEO’s report (the Security and Exchange Organization of Iran) total forecasted returns have been improved by 8 percent compared with last year report. In year 1393 (ending Mar 2015), the companies forecasted return was 568,000 IRR bn in total which had been 523,000 in previous year. Moreover, the price to earning ratio has reached 5 in current year which was 7.9 in 1392.