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| National Bank cuts interest rates |
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by
Taonga Sabola, 13 November 2006
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08:45:11
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Following an announcement of a bank rate cut by the Reserve Bank of Malawi (RBM) from 25 to 20 percent effective Monday, National Bank of Malawi (NBM) said Sunday it has adjusted its interest rates downwards and that the base lending rate is now at 22.5 percent
RBM announced on Saturday that it decided to cut the bank rate due to, among other things, improvement in macroeconomic performance and inflation which has been on the downward trend over the past few months.
With debt relief and a nose-diving inflation of 11.6 percent, a cut in the bank rate is what many analysts had predicted and it was just a matter of time before a decision was made.
NBM said in a statement Sunday the new base lending rate will be effective Monday.
NBM says its Savings Accounts will now attract a four percent interest while the Special Savers Account will be earning two percent interest per annum. Fixed deposits for two months at NBM will earn eight percent, seven percent for three months, four percent for six months, five percent for nine months and six percent for 12 months.
As of Sunday other major commercial banks had not yet made a decision on how much they will scale-down their base lending rates.
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