The committee was of the opinion that the People's Bank should be responsible for loans disbursement to individuals, cooperative societies and enterprises of up to a maximum of N1million, at an interest rate of not more than 75% of the Minimum Rediscount Rate
(MRR), provided that it does not exceed 15% per annum and receive substantial soft loan funding from the Federal Government for a period of 3 to 5 years, graduated in descending order, after which it should be self-sustaining.
The central bank also kept its lombard rate flat at 2.50 percent, the deposit rate at 0.50 percent and the rediscount rate
at 1.75 percent.
The country's rediscount rate
has been kept at 1.375% for 10 straight quarters.
On January 11th - even before a dollarisation law had been enacted - the central bank lowered the rediscount rate
from 200 per cent a year to 20 per cent.
11--even before a dollarization law had been enacted--the central bank lowered the rediscount rate
from 200% a year to 20%, but this newfound ray of hope was threatening to some and, during a 24-hour period (Jan.
The band of the CBR will stay at +/-2 per cent points and the rediscount rate
at three per cent points on the CBR; the rediscount rate
and the bank rate into March 2015 will remain at 14 per cent and 15 per cent respectively.
The Rediscount rate
and the Overnight Repurchase Agreements will remain unchanged at 4.25% and 4.0%, respectively, according to a press release issued by the bank.
On the other hand, the Minimum Rediscount Rate
(MRR) is being used as the price-based nominal anchor to influence the direction of the cost of funds in the economy.
The CBJ kept the interest rates unchanged on other monetary tools, the rediscount rate
and overnight repurchase agreements.
The bank's Monetary Policy Council has raised the benchmark seven-day intervention rate to four percent, the rediscount rate
to 4.25 percent, the Lombard rate to 5.50 percent, and the deposit rate to 2.50 percent.
In February 2009 the central bank's rediscount rate
dropped to a record low of 1.25% and the interest spread in the second quarter of the year fell to a record low of 1.11 percentage point as a result.
Federal Reserve, the Russian central bank could not lower the rediscount rate
in order to facilitate commercial bank borrowing so that the credit crunch in the economy could be overcome via bank lending to businesses.