Iraq's Central Bank to reduce interest rate

BAGHDAD (AP) -- The Central Bank of Iraq says it will reduce its interest rate by 1 percentage point to 14 percent, starting next year.

The decision reflects declining inflation. The bank statement Thursday says that inflation in November sunk to 12.7 percent from the 13.6 percent registered in the previous month.

Inflation roared as high as 69.6 percent at the end of 2006, but fell sharply to 32 percent in early 2007 and then to 11 percent at the beginning of this year when Iraq's central bank adopted a package of financial measures, including high interest rates.