Access Bank has issued a public notice notifying their clients that they have increased their base lending rates from 13.00% to 14.63%, effective August 8, 2023. The move is in line with the increase in the Central Bank Rate (CBR) from 9.5% to 10.5% during the last Monetary Policy Committee that was held on June 26, 2023.
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The increase in the CBR rate was geared towards anchoring the inflation rate, which has remained elevated and above the target range of between 2.5% and 7.5% for the last 13 months.
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This is the second time in 2023 that Access Bank has issued a notice indicating an increase in its lending rate. During the first notice, Access Bank increased its rate to 13.0%, effective June 19, 2022. The move was attributable to the increase in the CBR rate from 8.75% to 9.5%.
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Recently, banks such as Equity Bank and NCBA Bank have notified their clients that they have increased their Lending rates. It is expected that other banks will follow the same trend and try to align themselves with the increased CBR rate.
The MPC is set to meet again this month to discuss the effect of the current MPC and decide whether to increase, maintain, or decrease the CBR based on their analysis of the global and domestic economies.
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