Following the recent increase in Monetary Policy Rate (MPR) to 13 per cent, the prime lending rate in the banking sector reached 12.29 per cent in June, highest in 17-month.
Prime lending rates are the interest rate that commercial banks charge their most creditworthy customers, generally large corporations.
Prime lending has continued to witnessed steady increase since January 2022 amid mounting inflation rate.
The CBN had increased the MPR or interest rate to 13 per cent in response to global inflationary pressures, which had continued to hurt economies around the world.
Despite increasing prime lending rate, CBN numbers revealed that the maximum lending rate dropped to 27.61 per cent in June 2022 from 27.37 per cent reported in May 2022.
Analysts noted that the move is meant to attract more lending to customers.
Maximum lending rate dropped to 27.37 per cent, a 0.42 basis points decline from 27.79 per cent reported by CBN in…
Source: Thisday Newspaper