BoB gives banks free rein on lending rates

Making moves: Pelaelo says the liberalisation of the prime lending rate will be closely monitored
Making moves: Pelaelo says the liberalisation of the prime lending rate will be closely monitored

The Bank of Botswana (BoB) plans to give commercial banks the freedom to set their prime lending rate9s from April 1, the anchor instrument which influences lending rates across other credit products such as scheme and personal loans as well as mortgages.

The central bank argues that freeing up the prime lending rates will “facilitate market competition and fair pricing of credit and other lending products,” although the BoB will monitor implementation and “enforce good business conduct”.

Before a wave of reforms in the country’s interest regime dating back to last April, the prime lending rate, defined as the lending interest rate banks give their best customers, was pegged at one and a half percentage points above the bank rate.

Editor's Comment
GBV: The big elephant in the room

Sadly, the country seems not to have proper tools and the extent to which women and the girl-child are being abused is not adequately measured.Almost every week there are reports of women being attacked by their significant others and while men are attacked as well, women seem to be more on the receiving end.On May 24, 2023 news broke that a woman who was receiving support from the Botswana Gender-Based Violence Prevention Centre in Gaborone, was...

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