FNBB sticks with cautious approach to credit

The Bank of Botswana cut credit interest rates in the local market by 0.25% last week, citing the elbowroom created by months of low inflation and the need to boost the economy. 

The rate cut was the first since October 2017 and marks the lowest the bank rate has fallen in recent history. A cut in the bank rate is associated with cheaper loans and repayments, the resultant credit uptake leading to improved economy activity amongst businesses and greater demand by households.