Nico Asset Managers has projected that Commercial bank’s reference rate may moderate to around or below 12 percent in the short-term due to the continued lower Treasury bill yields (T-bill).

According to an economic report for January, all-type Treasury bill yields are declining with figures show that in January, they stood at 8.52% from 12.79% in January 2019.

On the other hand, the report notes that the reference rate for the month of January 2020 was 13.1% while that of February 2020 increased to 13.4%. “The increase was likely a result of an increase in interbank rate for the month of January” says the report.