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Banks see borrowing costs falling while CBK holds its benchmark steady

Commercial bank lending rates have eased month on month through August 2026, with banks expecting borrowing costs to fall despite an unchanged CBK benchmark.

By Teqwah Desk06 Oct 04:30Updated 06 Oct 04:301 min read

Banks see borrowing costs falling while CBK holds its benchmark steady — Photo: Business Daily Africa (direct)

Key takeaways

Average commercial bank lending rates eased month on month through August 2026.
Banks expect borrowing costs to fall despite an unchanged CBK benchmark rate.
The next focus is whether lending rates continue to decline as banks anticipate.

Borrowing costs are moving lower without a change in the CBK benchmark rate. Average commercial bank lending rates eased month on month through August 2026, according to Business Daily Africa (direct).

Banks expect borrowing costs to fall while the benchmark—the central bank’s reference interest rate—remains unchanged, the outlet reported. That expectation points to further easing, rather than a decline that has already been fully recorded.

The distinction matters for business borrowers: the benchmark rate and the average rate commercial banks charge for loans are separate measures. In the reported figures, average lending rates have declined even as the benchmark has stayed steady.

The next development to watch is whether commercial bank lending rates continue to move lower, matching banks’ expectations for borrowing costs.