The Central Bank of Nigeria (CBN) may not have cut interest rates as widely expected, but it has taken a decisive step to discourage commercial banks from parking excess liquidity in its Standing Deposit Facility (SDF) by reducing the potential returns the banks earn on such idle funds, thereby incentivising lending to the real economy.
The apex bank also raised the rate of borrowing from its window, called the Standing Lending Facility (SLF), to reduce t
…Retains interest rate at 27% to sustain inflation gains
The Central Bank of Nigeria (CBN) may not have cut interest rates as widely expected, but it has taken a decisive step to discourage commercial banks from parking excess liquidity in its Standing Deposit Facility (SDF) by reducing the potential returns the banks earn on such idle funds, thereby incentivising lending to the real economy.
The apex bank also raised the rate of borrowing from its window, called the Standing Lending Facility (SLF), to reduce t