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“July Sees 22.14% Increase in Lending and Savings Rates Gap”

In July, the disparity between the highest lending rate and the savings deposit rate in the banking sector grew by 22.14%.

Savings deposit rates at banks saw a minor increase, reaching 5.24% in July, up from 5.18% in June and 5.13% in May. Meanwhile, maximum lending rates experienced a slight decrease to 27.38% in July from 28.94% in June, as per data provided by the Central Bank of Nigeria (CBN).

The CBN’s data also indicated that the prime lending rate rose from 13.85% in June to 13.98% in July.

For deposit rates, figures for July were as follows: 12-month at 7.83%, six-month at 8.54%, three-month at 7.68%, one-month at 7.15%, and savings deposit at 5.18%.

Treasury bills rates increased to 4.45% in July, up from 3.87% in June.

Regarding monetary and inter-bank call rates, they stood at 18.75% and 6.73% respectively.

At the latest Monetary Policy Committee meeting in July, CBN’s Acting Governor, Folashodun Shonubi, announced a 25 basis points increase in the Monetary Policy Rate (MPR) to 18.75%, adjusted the asymmetric corridor, maintained the Cash Reserve Ratio (CRR) at 32.5%, and retained the Liquidity Ratio at 30%. The committee aimed to balance supporting investment for output growth recovery while also addressing inflation expectations and boosting investor confidence.

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