[CLICK HERE TO SEE THE UPDATED RATE FOR 2018 IN THIS POST]
The prescribed rate of interest, effective from 1 March 2016, is 10.25% per annum.
The prescribed rate of interest is linked to the repo rate. This new figure is in accordance with the formula for calculating the prescribed rate (repurchase rate plus 3.5%). The new rate takes into account the repo rate increase on 1 January 2016 from 6.25% to 6.75%.
When the Reserve Bank changes the repo rate, the new prescribed rate of interest becomes effective from the first day of the second month following the month of the repo rate announcement. The coming into effect of the new rate has been confirmed by the Minister of Justice in Government Notice 266 of 2016.