Banks Agree to Reduce the Cost of Money

By: Nghiinomenwa-vali Hangala

Local commercial banks have collectively agreed to reduce the cost of money by narrowing their margin by a total of 25 basis points (0.25%).

The reduction will be done in two phases, with the first reduction of 0.123% implemented 3 days ago.

The central bank has confirmed that various commercial banks in the country have agreed to reduce the cost of money or the interest they charge consumers and businesses when they borrow. This will make the mortgage rate and any other lending rates 0.25% lower/cheaper by the end of the year.

This is because the reduction is being implemented in two phases: the first reduction of 12.5 basis points took effect as of September 30, 2025, and a further 12.5 basis point reduction is expected to take effect by December 31, 2025.