National Bank of Malawi (NBM) has reduced its base lending rate by five percentage points to 35 percent from 40 percent effective August 1, according to a statement released by NBM Corporate affairs Manager, Annie Magola.
The statement further indicates that NBM has also reduced its mortgage lending rate to 35 percent from the 40 percent.
Magola said the move 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.
The bank has also reduced interest charged on savings bond deposits from 20 percent to 18 percent, ordinary saving from 11 percent to eight percent.
NBM has also reduced its deposit interest rates on special savers account from five percent to 4.5 percent, and student save from eight percent to six percent per annum.
The bank charges 20 percent per annum on its recently launched FiestaSave account.
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.