BoB slashes interest rates to stimulate economy

30 June, 2009 in Botswana, Business

source: Sunday Standard
by Sunday Standard Reporter
28.06.2009 2:35:04 P

Economic commentators praised the central bank’s Monetary Policy Committee’s (MPC)’s decision to slash bank rate by 150 basis points Tuesday in a move aimed at jerking up the jaded economy.

The move brought down the bank rate—the rate at which the central bank lends to commercial banks – to 11.5 percent, meaning that the commercial banks will follow by reducing the prime lending rate.

“This is a welcome move because the cost of borrowing will be a lot cheaper,” Chief Executive Officer of Stockbrokers Botswana, Geoffrey Bakwena, said Wednesday.

In its decision to lower interest rates, the Bank of Botswana said that “although inflation continues to be above the Bank’s objective range of 3- 6 percent, it is expected to maintain a [continue reading]

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