Bank of Botswana Cuts Key Lending Rate
April 21, 2009
Officials at the Bank of Botswana reduced their key lending rate to 13% from 14% and signaled more future reductions. Cumulative cuts total 250 basis points since the beginning of December. Inflation peaked in November, remains above target, but is expected to trend lower in the medium term in line with the slump in global and domestic demand. Three other central banks from Sweden, India and Canada cut rates earlier today by 50 basis points, 25 bps and 25 bps, respectively, whereas Hungary’s key 9.5% rate was left unchanged after yesterday’s policy meeting at the Magyar Nemzeti Bank.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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Could someone please tell me. What is the difference between Botswana Central Bank’s repo rate at the commercial bank’s interest rate? Is it the same as South Africa’s at 3.5%? And must the Central Banks of Namibia, Lesotho and Swaziland (as co members with SA of the Common Monetary Area) follow suit when SA adjusts its rates? SA has some of the world’s highest fee structure, and scores massively on the interest rates its borrowers must endure, especially the poorer ones.