CBN Sets Savings Deposit Rate At Minimum 10% Of MPR

The Central Bank of Nigeria (CBN), directed on Monday, that with effect from September 1, 2020, interest rates on Naira savings deposits, though negotiable, subject to a minimum 10% per annum of Monetary Policy Rate (MPR).

The CBN’s benchmark MPR is currently 12.5%, lower than inflation rate at 12.85%.

In a circular by Bello Hassan, Director, Banking Supervision, titled “Re: interest rate on savings deposit,” the apex bank noted with satisfaction the recent declining trend in market rates in the nation’s banking sector.

This, it said, followed “the implementation of policies aimed amongst others, at stimulating credit flow to the real sector,” hence the need for the review of minimum interest payable on saving deposits as provided in the Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions issued last December.