Madagascar’s lending interest rate held at 60% in 2025.

Neither way is good in itself. A higher rate pays banks and savers more and covers the risk of default, while a lower rate makes borrowing cheaper for firms and households. Which side benefits depends on who is asking, so the direction carries no verdict. The latest figure, 60% in January 2025, is unchanged from 60% in January 2024. Since 2016 the rate has ranged from a low of 48.3% in January 2021 to a high of 60% in January 2016. The current reading therefore sits at the top of that range, level with the 2016 peak.

Why it matters. At this level, a Malagasy business that borrows from a bank pays a heavy price for working capital, so only projects with very high returns cover the interest. Households that borrow face the same cost, which makes bank loans for housing or large purchases hard to carry. Savers with bank deposits and the banks themselves gain from wide margins, but the cost of credit limits how much private firms can expand.