Cape Verde: Bank of Cape Verde raises interest rates again

27 October 2008

Praia, Cape Verde, 27 Oct – New interest rates of an additional 50 basis points announced Friday by the Bank of Cape Verde (BCV) are due to come into effect Monday, said the governor of the central bank cited by Cape Verdean news agency Inforpress.

According to Carlos Burgo, the base rate for the BCV rose from 4.75 percent to 5.25 percent.

“On making this decision, the central bank took into consideration, in light of prospects for the world economy, the economic and financial situation of the country and the risks, particularly in terms of balance of payments and inflation,” he explained.

With this measure the BCV also aims to influence the flow of balance of payments, with a view to containing the current account deficit by slowing imports and attracting remittances from emmigrants living abroad.

A little over a month ago, the BCV had announced a rise in interest rates, in the same amount, with the base rate increasing from 4.25 percent to 4.75 percent. (macauhub)