BoB hikes rate, orders banks to hold lending rates :: Mmegi Online

The central bank has raised the monetary policy rate to 5.5 percent up by two percent citing rising inflation risks, whilst simultaneously ordering commercial banks to stay put and keep current lending rates in a bid to contain price pressures without tightening credit conditions.

Announcing the decision this week, the central bank said the adjustment was necessary in light of mounting inflationary pressures linked to global and domestic developments, particularly the recent surge in fuel prices.

Inflation stood at 4.2 percent in March, and is now projected to accelerate sharply, breaking through BOB's three percent to six percent objective range in the second quarter. BoB estimates inflation will average 8.7 percent in 2026, driven largely by increases in fuel costs, public transport fares, and medical aid premiums.

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BoB hikes rate, orders banks to hold lending rates

The central bank has raised the monetary policy rate to 5.5 percent up by two percent citing rising inflation risks, whilst simultaneously ordering commercial banks to stay put and keep current lending rates in a bid to contain price pressures without tightening credit conditions.

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