The Central Bank projects lending rates of Banks and Non-Bank Financial Institutions to reduce further in the immediate future

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The Central Bank had requested Licensed Banks and Non-Bank Financial Institutions to reduce interest rates on deposits with effect from 29th April 2019.
This measure was taken to accelerate monetary policy transmission through the financial sector, enabling Licensed Banks to reduce their interest rates on lending products in general, and particularly in favour of Small & Medium Scale Entrepreneurships, which will thereby enhance credit flows to the real economy.

Accordingly, the Central Bank expects lending rates of Banks and Non-Bank Financial Institutions to reduce further in the immediate future, and borrowers – particularly Small & Medium Scale Entrepreneurships – can expect to obtain credit facilities at reduced interest rates from Banks and Non-Bank Financial Institutions.

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