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{
    "id": 601356,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/601356/?format=api",
    "text_counter": 179,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, CBK also provided liquidity support to banks experiencing liquidity runs due to customer deposit withdrawals. So, CBK continues to closely monitor the entire banking sector and has in various press releases and press briefings advised the public that the issues at Dubai and Imperial Bank are not systemic and the banking sector on the whole remains sound and resilient. Mr. Speaker, Sir, the last item is on the interest rates. There has been a general increase in interest rates since the tightening of monetary policy in June, 2015. The CBK rate was raised from 8.5 percent to 10 per cent in June, and further to 11 per cent in July, 2015 by the monetary policy of CBK. This was backed by open market operations which resulted in tight liquidity conditions raising short term interest rates. These rising interest rate conditions in the market are short-term measures to ensure CBK achieves its primary mandate of price stability. Normal interest rate conditions are expected when threats to inflation and exchange rate dissipate. Mr. Speaker, Sir, shortly after this statement that was sent on 29th October, 2015, that situation is changing and what the Governor is saying here is happening and the rates are generally on a decline. The Treasury Bill rates have gone down significantly from 21 per cent. Last week, it went down to almost 13 per cent and the interest rates are also going down in the same way. Thank you."
}