While a rise in maximum interest rates offers lenders incentives to grant loans to consumers with a higher risk profile, it’s clear that this could also overburden borrowers. Conversely, a reduction would normally enable households to borrow at more moderate rates.
It is my sincere hope that despite the expenditure pressures, obviously attend to an election year that I hope the Ministry of Finance will carefully consider the consequences for interest rates and exchange rate stability of increased deficit financing or borrowing domestically. I hope that on this matter we can quickly find agreement between the Bank and the Ministry.