THE overnight rates reached a six-week high last Thursday signalling liquidity drainage in the market. On the average rates reached 14.80 per cent after climbing rapidly since last month when trading between 5.00 per cent and 10.00 per cent.
According to Bank of Tanzania (BoT) data, since the beginning of this month the rates started to climb rapidly to trade at 8.89 per cent before advancing to 14.80 of last Thursday. The overnight rate is crucial component to determine market interest rates as are generally the rate that banks use to borrow and lend from one another on the overnight market.
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