Friday, January 6, 2012
Bank of Cape Verde Raises Rate 150bps to 5.75%
The Banco de Cabo Verde (Bank of Cape Verde) increased its minimum cash availability ratio (DMC) by 200 basis points to 18.00% from 16.00%, and its base interest rate by 150 basis points to 5.75% from 4.25% previously. The Standard Lending Facility rate will be 8.75% and the Absorption Standing Facility Rate will be 3.25%. The Bank said [translated]: "The unfavorable balance of payments, the persistence of serious financial problems at the international level - in particular in the euro area - which could have impact on the evolution of the economy and domestic economic developments, require the making of monetary policy measures consistent with ensuring exchange rate stability and financial system."