The bank says the rate removal would help to stabilise overnight interest rates within the policy rate corridor of the Central Bank.
The 5.0 percent window was sealed from Monday with the direction going to the market Friday.
The full statement reproduced below :-
In September 2014, the Central Bank rationalised the access to the Standing Deposit Facility (SDF) of the Central Bank with a view to encourage commercial banks to utilise the substantially high amount of excess liquidity prevailing in the market to enhance credit flows to the private sector at reasonable interest rates.
Consequent to the rationalisation of the SDF, overnight interest rates fell below the policy rate corridor, and the special SDF rate of 5 per cent became the effective floor for overnight money market rat