Interest rates sink to 25-year low

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Bank of Botswana (BoB) yesterday cut the bank rate by a percentage point to a 25-year low of 6.5 percent in line with falling inflation and the growing need to spur productive lending.

The rate cut will come as a boon for borrowers as commercial banks are expected to reduce their lending rates by a similar margin, taking the prime-lending rate down to eight percent.

In the prevailing period of static real incomes, the central bank’s move will also boost the welfare of the general consumer as it comes a week after fuel prices were reduced for the second time in as many months.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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