Banks prefer higher interest rate to naira devaluation – CBN

Central Bank of Nigeria CBN has stated that the Chief Executive Officers of banks in the country have indicated their preference for high interest rate rather than the devaluation of the naira.

The CBN Governor, Lamido Sanusi, represented by Director, Credit Risk Management, Kemi Fatobi , disclosed this at the 13TH Annual General Meeting / National Conference of Risk Managers Association of Nigeria held in Lagos.

While responding to why the CBN does not want to reduce the Monetary Policy Rate MPR, he said that the apex bank was extremely committed to defending the economy.

In defence of high interest rates, Sanusi told the risk managers that there was no empirical evidence so far in the Nigerian context, that lowering interests would boost the kind of lending that is hoped for, especially for real sector growth.