CBN’s new policy seen heaping pressure on T-Bill yield

Yields on Treasury bill (T-Bill) instruments are expected to remain pressured, and banks will likely increase customer deposit rate following the new policy on banks standing deposit by the Central Bank of Nigeria (CBN) on Tuesday.

After its two-day Monetary Policy Committee (MPC) in Abuja on Tuesday, the CBN raised its benchmark interest rate known as the Monetary Policy Rate (MPR) by 25 basis points to 18.75 percent from 18.5 percent.

By unanimous agreement of 11 members present at the meeting, the CBN also narrowed the asymmetric corridor from +100/-700 to +100/-300 basis points around the MPR.