Zimbabwean Lenders Ask Central Bank to Lift Interest-Rate Cap

Zimbabwe’s lenders, which include units of Standard Bank Group Ltd. and Ecobank Ltd., appealed to the central bank to raise interest rates that have been capped at 12 percent for the past two years, saying this would increase lending in the collapsing economy, Bloomberg News reported. They also proposed that the Reserve Bank of Zimbabwe introduce an overnight rate to facilitate lending between financial institutions and the central bank, Bankers Association of Zimbabwe submissions seen by Bloomberg show. “The BAZ recommends lifting of the interest-rate caps,” the lobby group said in correspondence with the central bank. It would “allow for proper risk-based pricing of loans.” Read more