A WEEK after the Bank of Namibia (BoN) dropped its repo rate by half a percentage point, FNB Namibia yesterday took the lead among commercial banks and announced a drop of 50 basis points in its prime lending rate.
However, the new rate of 11,5 per cent will only be effective from Monday.There is also no rate relief for home owners. FNB Namibia has left its mortgage rate unchanged at 12 per cent.Unlike last month, when pressure from BoN Governor Tom Alweendo convinced banks to cut their prime lending and home loan rates by between 50 and 100 basis points, and not just 50 basis points like the central bank, this time FNB Namibia’s prime relief equals that of the BoN.Nedbank Namibia, Standard Bank and Bank Windhoek still have to announce their position.Standard Bank Namibia last month not only cut its prime lending and home loan rates first, it also decreased them more than the other three banks.Observers say the banks have now adopted a wait-and-see approach, waiting to see what the competition does before deciding what to do themselves.jo-mare@namibian.com.na
