Rwanda's cost of borrowing should be put into context
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RE: “Central Bank governor on the spot over interest rates” (The New Times, February 24).
Why compare our interest rates with those of Kenya and Uganda which are relatively bigger economies than our country?
Businesses in each of these countries enjoy a bigger market than us and, therefore, it is easier for them to make bigger returns than in Rwanda. Banks would instead make more profits by lowering interest rates to attract more borrowers.
For instance, instead of charging between 16 to 18 per cent, lowering this range to 12 to 18 could increase loan portfolios and more profits for the banks.