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Banks increase lending rates on liquidity crunch

Friday, May 09, 2025 | 2270 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.

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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.

'Face to face with the man who tried to kill me'

Couple perishes in suspected 'passion killing' crash

Dimajwe duo arrested after missing assault victim found buried

Dikoloti escapes injury after car hits cow

Five-year-old boy hospitalised after road accident in Mogoditshane

UDC rolls out 'promised' child grant

BPF to hold first youth, women congresses

Of borrowed wheels and brand new GD6

Two-tier education system demands action