BoB engages banks on rates, sounds warning

“We continuously have consultations with commercial banks to discourage interest rate changes which are counter to monetary policy stance and economic situation, as well as other stakeholders to address unwarranted price increases,” Governor Cornelius Dekop said at a briefing earlier today. “Our communication has been clear on this, clear with commercial banks that we are not going to tolerate increases which are detrimental to businesses and consumers and the economy.”

Without speaking specifically about the runaway foreign currency trading rates that banks have instituted since July 11, Dekop hinted that the central bank was prepared to take more direct action in the matter.