The disparity between the highest lending rate and the interest rate for savings deposits within the banking sector expanded by 22.14% in July.
The savings deposit rate offered by banks experienced a slight increase to 5.24% in July, up from 5.18% in June and 5.13% in May, according to data from the Central Bank of Nigeria.
Statistics obtained from the apex bank, as reported by The PUNCH, also indicate a minor decline in the maximum lending rate, which decreased to 27.38% in July from 28.94% in June.
The Central Bank of Nigeria disclosed that the prime lending rate rose from 13.85% in June to 13.98% in July.
Furthermore, the data revealed that deposit rates for various durations—12 months, six months, three months, and one month—stood at 7.83%, 8.54%, 7.68%, and 7.15% respectively, while the savings deposit rate remained at 5.18% in July.
Treasury bills rates witnessed an increase from 3.87% in June to 4.45% in July.
Monetary rate and the inter-bank call rate were recorded at 18.75% and 6.73% respectively.
In the recent Monetary Policy Committee meeting held in July, Folashodun Shonubi, the Acting Governor of the Central Bank of Nigeria, stated that after careful deliberation, the committee decided to implement a 25 basis point increase in the Monetary Policy Rate (MPR), bringing it to 18.75%. The committee also adjusted the asymmetric corridor to +100/-300 basis points around the MPR, maintained the Cash Reserve Ratio (CRR) at 32.5%, and retained the Liquidity Ratio at 30%.
Shonubi emphasized the committee’s cautious approach in reaching this decision, considering the importance of supporting investments to promote output growth and recovery. The decision to moderately raise the rate was based on a balance of factors, including curbing inflation expectations, narrowing the negative real interest rate gap, and enhancing investor confidence.
