CBN Raises Interest Rate on Naira Savings Deposits to 30% of MPR.

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The Central Bank of Nigeria (CBN) has announced an upward adjustment of the negotiable minimum interest rate; payable on local currency savings deposits to 30 per cent of the Monetary Policy Rate (MPR).

In September 2020, the central bank, as part of efforts to mitigate the impact of the COVID-19 pandemic; had slashed the minimum interest rate payable on Naira savings deposits from 30% of MPR to 10% of MPR.

The apex bank, in a letter addressed to all banks and titled, “Review of Interest Rate on Savings Deposits”; which was dated August 15, 2022 and signed CBN Director, Banking Supervision Department, Mr. Haruna Mustafa, stated that it became necessary to review the rate back to 30 per cent of MPR following the return of normalcy in the economy and considering the prevailing macroeconomic conditions.

According to the CBN, the effective date for the implementation of the new circular was August 1 2022.

However, CBN while announcing the reduction of the minimum interest rate payable on local currency savings deposits to 10 per cent of MPR last year.

Thisdaylive.

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