Interbank rates down to four month

ONLINE REPORTER

THE interbank borrowing rates have gone down to four months low as liquidity situation improves in the economy.

The Bank of Tanzania (BoT) data shows that the rates on average have gone down to 11.96 per cent on Monday registering a lowest level in five months since June.
CRDB Bank said the interbank money market liquidity improved considerably as borrowing rates down by 1.05 per cent on Monday to clock the lowest rate since June of 11.96 per cent.
“Overall, liquidity has improved in the market recently and further improvements are expected as yearend approaches,” CRDB bank said on its daily market highlights.
The declining in borrowing rates spurred more business as traded volume was up by 20 per cent 34.5bn/-.
National Microfinance Bank (NMB) said interbank market is fairly liquid and banks are still willing to rollover maturities and overnight rate slightly at 13.01 per cent high.
On year-to-year basis, the rate last year was 14.74 per cent on the same date last November.
Nevertheless, the highest rate was registered on August 25 and September 29, which was almost 18 per cent