Nigerian banks commence interest rate increase after CBN’s fourth consecutive hike

Nigerian banks have commenced an interest rate upward review amid the Central Bank of Nigeria’s fourth consecutive rate hike.

Recall that at the 296th Monetary Policy Committee on Tuesday, CBN governor, Olayemi Cardoso announced a further interest rate hike to 26.75 percent from 26.25 in May.

In response to the Apex Bank interest rate review, Guaranty Trust Bank (GTBank) has announced an upward revision of interest rates on its MaxPlus loan facilities, effective August 6, 2024.

The bank based its decision on the prevailing conditions in the money market, which have seen a general rise in interest rates.

In a recent statement, GTBank highlighted that the new interest rate on MaxPlus loan facilities will be adjusted from the existing 28.5 percent to 29 percent.

This comes days after the Chief Executive Officer of Financial Derivatives, Bismarck Rewane had earlier explained that the CBN’s recent decision to adjust the asymmetric corridor around the Monetary Policy Rate (MPR) to +500/-100 basis points would deter banks from borrowing foreign exchange from the apex bank thereby reducing the pressure on FX.