The Central Bank of Nigeria (CBN), has directed deposit money banks to adjust interest rate on savings deposits to 30% of the Monetary Policy Rate (MPR).
In a letter dated August 15, the apex bank said the review became necessary, following the return to full normalcy and considering the prevailing macroeconomic condition after the scourge of the COVID-19 pandemic.
Recall that the CBN had earlier reduced the minimum interest rates payable on local currency savings deposit from 30% to 10% of the MPR as part of the efforts to ameliorate the impact of the COVID-19 pandemic.
Signed by the Director, Banking Supervision, Haruna B. Mustafa, the letter said the policy became effective from August 1.
“The negotiable minimum interest rate on local currency savings deposits shall be 30% of MPR,” he said, adding that the letter supersedes a previous letter referenced: BSD/DIR/GEN/LAB/13/052.
“This was aimed at stimulating growth in the larger economy, following the economic slowdown occasioned by the pandemic,” the letter said.
While the MPR serves as a benchmark for lending and used by the CBN to regulate inflation, the savings deposit rate is paid by commercial banks to customers for keeping money in their bank accounts to boost savings.
The review became necessary, following the return to full normalcy and considering the prevailing macroeconomic condition after the scourge of the COVID-19 pandemic.
