(Business in Cameroon) - Interest rates for individuals have seen an increase of 3.2% between the first and second quarters of 2023 in Cameroon, data from the central bank Beac showed. Specifically, these rates have risen from 13.33% to 16.62% over the period, marking an increase of 329 basis points (3.2%).

This implies that individual borrowers in Cameroon have experienced a more significant rise in bank interest rates compared to businesses. Indeed, while rates for individuals climbed by 3.2% from the first to the second quarter of 2023, those for SMEs only increased by 1.43%, from 9.95% to 11.38%.

Meanwhile, interest rates for large enterprises went up by 99 basis points, or 0.99%. "The average debtor rates served to large enterprises slightly decreased to 7.05% in the second quarter of 2023, from 7.21% a year earlier. However, they increased by 99 basis points between the first and second quarters of 2023," the BEAC report states.

This widespread increase in bank interest rates in Cameroon can be attributed to the implementation of a restrictive monetary policy by the central bank. The measure was aimed at curbing inflation in the Cemac zone through an increase of key rates, suspension of liquidity injection operations, and intensification of liquidity withdrawing operations from banks.