RBZ caps interest rates, further reduces bank charges

Reserve Bank of Zimbabwe (RBZ) has capped interest rates at 12 percent per annum from 18 percent and further reduced bank charges in a bid to enhance financial sector stability and stimulate production across various sectors of the economy.

Said Mangudya:

With effect from 1 April 2017, all banking institutions are required to ensure that lending interest rates should not exceed 12 percent per annum and that bank charges that include application fees, facility fees and administration fee, should not exceed three percent.

The RBZ last December ordered a downward review of cash withdrawal charges that came into effect on 12 December when the bank adopted a proportional pricing model to replace the fixed charges and align cash withdrawal charges to amounts withdrawn.

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