CBN jacks up lending rate to 16.5 per cent

The Central Bank of Nigeria (CBN)  Tuesday announced an increase in b benchmark lending to 16.5 per cent. The Bank says it took the decision in its sustained bid to control inflation and relieve the naira.

Godwin Emefiele, governor of the CBN, said this at the end of the Monetary Policy Committee meeting in Abuja. The CBN claimed it had started seeing the result of earlier lending rate increases.

The CBN also retained Cash Reserve Ratio (CRR) at 32.5 percent, and it equally kept the  asymmetric corridor at +100 and -700 basis points around the MPR. The liquidity ratio was retained at 30 per cent.

Cash reserves ratio is the share of a bank’s total customer deposit that must be kept with the central bank in the form of liquid cash.

The bank’s liquidity ratio is the proportion of deposits and other assets they must maintain to be able to meet short-term obligations.



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