The Central Bank (CB) on Thursday requested all commercial banks to cut interest rates from end October on a range of loans including credit card advances.
It said interest rates on housing loans should be reduced 14 % per annum, on credit card advances to 24 % per annum and interest on other loans and advances to be adjusted downwards by around 1-2 % per annum.
It said while the CB has eased its Repurchase rate and the Reverse Repurchase rate by 325 basis points and 300 basis points, respectively, banking lending rates have also declined with a time lag, but are yet to show full downward adjustment.
“At the same time, the current macro economic performance and stability warrant a reduction in the risk premia added to lending rates, thus leading to the spread between lending rates and deposit rates of banks reducing further,” it said. |
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