BoB hands Christmas gift to borrowers

The central bank last week shaved interest rates by 25 basis points from 2.65 to 2.4 percent, a move that means borrowers on variable rate loans such as personal and credit card loans, will enjoy a decrease in their repayments. Consumers intending to take up new loans will also enjoy the new lower interest rates.

The reduction in interest rates follows an updated BoB inflation forecast which shows lower than previously expected prices in the economy going forward. The central bank now expects inflation to average 4.9 percent this year, from its October forecast of 5.2 percent, providing scope to ease borrowing costs and support economic activity.