Tag: lending rates
In a letter from the Central Bank Governor, Bank of Uganda has threatened to cap the interest that commercial banks can charge borrowers, after the industry failed to reduce loan rates in response to cuts in benchmark rates. David Walakira, Policy Analyst and Development Economist joins CNBC Africa for more.
South African bonds priced in a higher likelihood of a 50 basis point rate cut by the central bank sooner than anticipated.
"Those risky borrowers at the margins may be cut off from borrowing. It's unclear which way this will go. We haven't done it before."