The Reserve Bank in its latest economic reviews has stated that abundant liquidity in the banking system and quantitative easing measures by them have helped keep borrowing rates low.
Accordingly, commercial banks’ lending and deposit rates declined over the year and over the month in November 2021, except for the new time deposit rate which increased over the month.
The RBF states the weighted average outstanding lending rate of banks was 5.79 percent in November compared to 6.15 percent a year ago.
It also states in its economic review that inward personal remittances grew by 16.2 percent in the 11 months of 2021 to total $752.7 million.
Of the total cash transfers received, $445.2 million were remitted via money transfer operators, $161.9 million through mobile money platforms, and $145.6 million through commercial banks.
The RBF says high global energy and food prices coupled with continued supply chain bottlenecks and labour shortages continue to affect domestic prices.
Inflation has been on a rising trajectory in the second half of 2021 and is expected to maintain the momentum in the first quarter of this year.
The annual inflation rate is estimated to have been around two percent at the end of 2021 and is projected to rise to 2.5 percent by the end of this year.