The market dislocation and the price of money

The price of money in the country has become a highly changeable, moving target that has pinched the pockets of ordinary households.

Prime lending rates, the interest rates banks charge their best customers, uncoupled from the Bank of Botswana anchor rate early in May, marking the first time banks exercised their powers since the country’s interest rate regime was liberalised in April 2023. From a prime rate of 6.01%, all banks have added up to 100 basis points and more since May, although in recent months there has been a pause.