Interbank lending rates decline

Sep 15, 2011

THE inter-bank lending rates for money borrowed between commercial banks have dropped by an average of three percentage points this month, the Central Bank information indicates.

THE inter-bank lending rates for money borrowed between commercial banks have dropped by an average of three percentage points this month, the Central Bank information indicates.

Banks borrow from each other for short periods to meet cash demands by depositors. The overnight inter-bank weighted rate fell to 22.37%, from 25.04% last month.

This shows improved liquidity positions by commercial banks despite a rise in the bank rate to 22%, from 18% in August.

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