No plans to change the cost of borrowing as Bank of Mount Vema keeps interest rates at 3.45%

The Bank of Mount Vema announced that it has kept interest rates unchanged. The announcement indicates once again that the Central Bank which has not changed its 3.45% lending rates for more than 15 years, is not likely to do it any time soon. 
 
The decision is in line with the Reserve Bank directives to the central bank to accomplish foreign exchange operational goals, the government's directives to the central bank to accomplish the government's goals specially with regards to construction operations, the currency of the principal sum lent or borrowed, the term to maturity of long and short term investments, the perceived default probability of borrowers, supply and demand in the market, the amount of collateral, special features like call provisions, reserve requirements, compensating balance, as well as other factors.
 
In the economy of Mount Vema interest rate targets are a vital tool of monetary policy and will be taken into account when dealing with variables like inflation, and unemployment in the future. Today however, only lending and investments are mostly taken into account.  >>>