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Commercial Banks Announce Reduction in Interest Rates

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Commercial Banks Announce Reduction in Interest Rates

The Bank of Mauritius has reduced its key interest rate to 4%, prompting commercial banks to adjust both their borrowing and savings rates downward. This decision, initiated by a 50 basis point cut from the Monetary Policy Committee, has influenced several major banks in the region.

Absa (Mauritius) was among the first banks to announce its revised rates, which took effect on September 27.

Following closely was the Mauritius Commercial Bank (MCB), which implemented new rates as of October 1.

At MCB, the savings interest rate has dropped by 0.50%, from 3.10% to 2.60%. Similarly, the Prime Lending Rate has also seen a reduction of 0.50%, decreasing from 6.75% to 6.25%.

According to MCB, these rates apply to deposits ranging from Rs 100,000 to Rs 25 million.

The State Bank of Mauritius (SBM) similarly adjusted its rates effective October 1.The savings rate has been lowered to 2.60%, down from 3.10%, while the borrowing rate has decreased from 7.05% to 6.55%.

SBI (Mauritius) has also implemented its new rates, effective from October 1. Notably, interest on savings accounts at SBI is paid semi-annually, with disbursements occurring at the end of June and December.

Meanwhile, Bank One has indicated that further information regarding its interest rates will be provided on Friday, October 4, 2024.

The adjustments by these banks reflect a significant response to the Bank of Mauritius’s policy rate cut, aimed at stimulating economic activity by making borrowing cheaper for consumers and businesses alike.

Source: Defi Media

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