Bank of Cabo Verde reduces base interest rate to 3.75 pct

24 July 2014

The Bank of Cabo Verde (Cape Verde) decided to lower its base interest rate by 50 basis points to 3.75 percent in order to make monetary policy more effective as well as to drive the market the central bank said in a statement issued Wednesday.

The Cape Verdean central bank also said that it had reduced the permanent liquidity facility by 50 basis points to 6.75 percent and the absorption rate to 1.0 percent and the rediscount rate to 7.75 percent.

The new interest rate structure will be put in place on 1 August 2014.

The decision by the Bank of Cabo Verde took into account changes in international interest rates, particularly in the Euro Zone, with a view to safeguarding price and exchange rate stability.

Last March the Cape Verdean central bank reduced its base interest rate from 5.75 percent to 4.25 percent in order to drive economic activity and project finance on the archipelago. (macauhub/CV)