In a response to escalating interest rates, the Central Bank of Nigeria (CBN) yesterday pegged the banking industry's deposit and lending rates to a maximum of 15% and 22% respectively.

CBN Governor, Professor Chukwuma Soludo said the measures was part of the outcome of a meeting with various managing directors of banks under the under the auspices of the Bankers' Committee.

Soludo said that although the market-based approach to interest rate determination remains superior, the current economic crisis created a situation where it is better to moderate competition and ensure the soundness of the system.

During an emergency meeting on Sunday, the Bankers' Committee decided that interest rates have risen to levels that are not conducive to the desired economic recovery.

These measures will be in place until December 2009 when it will be reviewed.