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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
Depression is real; let's take care of our mental health

It is not uncommon in this part of the world for parents to actually punish their children when they show signs of depression associating it with issues of indiscipline, and as a result, the poor child will be lashed or given some kind of punishment. We have had many suicide cases in the country and sadly some of the cases included children and young adults. We need to start looking into issues of mental health with the seriousness it...

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