In line with the Central Bank of Nigeria’s (CBN) sustained hike in the Monetary Policy Rate (MPR), banks have started raising interest rates on deposits. The CBN’s recent Monetary Policy Committee (MPC) meeting resulted in another 25 basis points increase, making it the sixth consecutive raise in the past year, bringing the MPR to 18.75% from 18.50%. This move aims to tackle rising inflation in the country.
The CBN also narrowed the asymmetric corridor around MPR to +100/-300 basis points from +100/-700 basis points. The MPR serves as the benchmark interest rate that influences other interest rates in the financial system.
Following this adjustment, banks are expected to comply with the CBN’s policy, which sets the minimum interest rate on savings account deposits at 30% of MPR.
In response to the CBN’s directive, Standard Chartered Bank Nigeria sent an email to its customers, confirming the upward revision of interest rates on their Savings accounts. The bank informed customers that credit interests would be computed based on daily account balances, and withdrawals would be limited to four per month to qualify for interest payment.
Similarly, Stanbic IBTC Bank also notified its customers via email about the upward review of interest rates linked to the Monetary Policy Rate. The bank stated that this adjustment would take effect from July 25, 2023.