Mmegi

Banks increase lending rates on liquidity crunch

Friday, May 09, 2025 | 2280 Views |

Mercury rising: The pressure is increasing on households, from the slowdown in the economy, to banks raising their lending rates
PIC: MORERI SEJAKGOMO

Two commercial banks unilaterally raised their prime lending rates in the past week, marking the first-time banks have uncoupled from the Bank of Botswana interest rate benchmark since the freedom to do so was introduced two years ago.

Absa Bank Botswana, Stanbic Bank Botswana, and BBS Bank raised their lending rates by between 75 and 100 basis points, as the impact of a long-running liquidity crunch in the local capital market came to bear.

Since April 2023, banks have been able to raise their lending rates independently from the central bank’s Monetary Policy Rate (MoPR), as part of interest rate reforms aimed at better transmitting monetary policy.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

ECONOMY

Gov't moves to close tax gaps

Staff Writer | 1d ago

Chief judge promises fairness at tomorrow's Miss Botswana finale

Larona Makhaiza | 1d ago

High pressure mounts on fuel prices

Mbongeni Mguni | 1d ago

We respect AFCON final decision – Babitseng

Mqondisi Dube | 1d ago

Court blow rocks BPF leadership

Tsaone Basimanebotlhe | 1d ago

BPF moves to rebuild unity-Lucas

Tsaone Basimanebotlhe | 1d ago

‘Reatile, Ookeditse deal was gentleman’s agreement’

Tsaone Basimanebotlhe | 1d ago

Branch fires early warning shot as Portugal fuels title push

Kabelo Boranabi | 1d ago

A promising step for public schools, but...

For too long, the state of many public schools has been a source of shame. We have all seen the pictures and heard the stories of broken windows, unreliable water and electricity, topped by classrooms that are not fit for proper learning. The establishment of the Education Infrastructure and Management Company Ltd (EIMC) signals that authorities are finally ready to take this problem seriously. We must commend the government for this initiative....

The Monitor Editor | 17 March 2026

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.

Explore

More

Banks increase lending rates on liquidity crunch

Two commercial banks unilaterally raised their prime lending rates in the past week, marking the first-time banks have uncoupled from the Bank of Botswana interest rate benchmark since the freedom to do so was introduced two years ago.

Gov't moves to close tax gaps

Chief judge promises fairness at tomorrow's Miss Botswana finale

High pressure mounts on fuel prices

We respect AFCON final decision – Babitseng

Court blow rocks BPF leadership

BPF moves to rebuild unity-Lucas

‘Reatile, Ookeditse deal was gentleman’s agreement’

Branch fires early warning shot as Portugal fuels title push

A promising step for public schools, but...