National Bank of Malawi goes a mile further in rate cut

BLANTYRE  (Caroline Kandiero, Times Media) National Bank of Malawi (NBM) has taken a step further in the latest lending rate reduction trend on the financial market through a sharper cut in its base and mortgage rate to 35 percent from over 40 percent.

The bank says the changes will become effective on August 1, 2013.  NBM Corporate affairs Manager, Annie Magola, said on Wednesday that the decision to adjust the rates by the bank follows positive economic developments on the local market.

“Apart from the Reserve Bank rate, we also look at other variables notably inflation rates, treasury bills rates, liquidity situation among others to decide on the cost of lending,” said Magola.

She said all these variables have for the past several months been moving positively.

Magola observed that inflation has now moved from above 30 percent and to 27.9 percent in the month of June and that Treasury Bills (TB) rates are now down to averaging 31 percent from the highs of 40 percent.

Standard Bank was the first to reduce its lending rate early this month to 38 percent while Ecobank followed later and put its rate at 39 percent.

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