Importantly, the term premium embedded in interest rates has been falling. The term premium reflects the extent of uncertainty about future prospects for inflation and for real economic activity. The reduction in the term premia appears to be associated, in part, with the greater economic stability we have been enjoying.
Accordingly the Central Bank has this week issued a letter of intent to the first applicant, Credit Reference Bureau Africa. This is an approval in principle to conduct credit reference bureau business. The Bureau will commence operations on completion of an independent third party system and security audit and an onsite inspection by CBK.