Mmegi

BoB warns as banks test interest rate moratorium

Speaking softly: The central bank says it is still engaging with banks and does not want to have to take tougher action PIC: MORERI SEJAKGOMO
Speaking softly: The central bank says it is still engaging with banks and does not want to have to take tougher action PIC: MORERI SEJAKGOMO

The Bank of Botswana’s conduct and compliance unit is scheduled to conduct an assessment of the effective interest rates prevailing amongst local banks, amidst reports that some of them are “innovating” around the central bank’s moratorium on raising rates.

Since October last year, the BoB has restricted banks from increasing their prime lending rates, the benchmark rate against which other credit products and services are priced within banks.

The move came after a sharp upswing in interest rates amongst banks due to the shortage of liquidity in the market.

Editor's Comment
Kudos to Botswana Police Service, other security entities

“In any moment of decision, the best thing you can do is the right thing.”– Theodore RooseveltThrough the two-day event, over 700 athletes from 40 countries, and multitudes of spectators gathered in Gaborone to witness a world-class sporting spectacle.Beyond the medals and performances on the track, Botswana won something equally important: international respect. One of the key pillars behind the success was the sterling work done by the...

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