Bank, interest rates spread stir debate - The Nation Online

Bank, interest rates spread stir debate - The Nation Online:



Bank, interest rates spread stir debate

Orama Chinamulungu @ December 21, 2017 o Comments

The 10 percentage points gap between commercial bank lending rates and the bank rate has

stirred debate with some economists saying the spread is too much and a detriment to the

economy while others argue that it is justifiable.

When the Reserve Bank of Malawi (RBM) slashed the bank rate the rate at which the

commercial banks borrow money from the central bank by four percentage points to 18

percent from 22 percent, most commercial banks followed suit by cutting lending rates.



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