Bank rate is set by:

**The reasoning** The **bank rate** (also called the **discount rate**) is the interest rate at which a country's central bank lends money to commercial banks. In Nigeria, this is controlled by the **Central Bank of Nigeria (CBN)**. Think of it this way: the CBN is like the "bank for banks." When FirstBank or GTBank needs emergency funds, they borrow from the CBN at the bank rate. By raising or lowering this rate, the CBN controls how expensive it is for banks to borrow money — which affects the whole economy. High bank rate = borrowing is expensive = less money circulating. Low bank rate = cheaper borrowing = more economic activity. This is a key **monetary policy tool** used to control inflation and stabilize the economy. **Why the wrong options tempt you** - **A) Stock exchange** deals with buying/selling shares, not interest rates - **C) Commercial banks** receive the bank rate; they don't set it (though they set their own lending rates to customers) - **D) Treasury** handles government spending and debt, not banking rates **Quick takeaway** The Central Bank sets the bank rate because it's the regulator that controls monetary policy — remember: "Central Bank = Controller of money supply and rates."