Botswana cuts rates, capital ratios for commercial banks in coronavirus response
Published on: Thursday 30 April 2020
Botswana's central bank on Thursday slashed the benchmark policy rate by 50 basis points to 4.25% in a raft of interventions aimed at cushioning the economic impact of the coronavirus by easing of borrowing costs across the board. The bank's monetary policy committee also announced a drop in the prudential capital adequacy ratio for commercial banks, to 12.5% from 15%. "The reduction of primary reserve requirements will free up 1.6 billion pula which will be used by banks to finance economic activity," Bank of Botswana Governor Moses Pelaelo said.
