If the Central Bank Rate is 8.75%, why are some borrowers still paying 14% or more?

Christopher Legilisho breaks down an important distinction that often gets missed: The CBK sets the benchmark. Banks price the risk. Why? Because banks are assessing: – Credit risk – Business conditions – Economic uncertainty – The likelihood of repayment The result is what economists call a “transmission gap,” where policy changes at the top take time to fully reach borrowers on the ground.