Banks lending, deposits rates decline

According to the Bank of Tanzania (BoT) monthly economic review for March, the overall weighted average lending rate was 17.27 percent in February 2018 compared with 18.31 percent in January 2018 and 17.80 percent in the corresponding month in 2017.

Likewise, the overall weighted average deposit rate fell to 8.91 percent from 9.50 percent and 10.32 percent in January 2018 and February 2017, respectively. Specifically, one-year lending rate eased by 63 basis points from rates recorded in January 2018 and February 2017 to 18.01 percent.

The 12-month deposit rate also fell to an average rate of 10.09 percent from 10.77 percent and 12.12 percent in the preceding month and corresponding month in 2017, respectively month in 2017.

During the month under review, commercial banks dominated the two Treasury bills auctions worth 340bn/- by 70 per cent compared with 290bn/- offered in the preceding month attracting bids worth 627bn/- higher than 555.7bn/- in January.

The downward trend continued to characterize the overall weighted average yield averaging 5.45 percent from 6.54 percent in the preceding month and 15.02 percent in the corresponding period last year. The Bank issued 2 and 7 year bonds worth 84bn/- and 100bn/- that ended oversubscribed. Like in the Treasury bills auctions, yields on Treasury bonds remained on a declining trend.

Source: Daily News

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