Nigeria: CBN Slashes Interest Rate, MPR, to 12.5 Percent

The Monetary Policy Committee (MPC) of Central Bank of Nigeria on Thursday reduced the Monetary Policy Rate (MPR) to 12.5 per cent, from 13.5 per cent.

The MPR is the interest rate at which the central bank lends to commercial banks. It ultimately affects the rates at which individuals and businesses can source loans from commercial banks as such loan rates cannot be lower than the MPR.

The reduction was announced after the MPC meeting by the Governor of the Central Bank of Nigeria, Godwin Emefiele.

The MPR is the instrument used by the Central Bank of Nigeria to control interest/ lending rates.

While delivering the communique, Mr Emefiele said other monetary policy parameters remained unchanged.

He said the MPC resolved to retain the Liquidity Ratio at 30 per cent and the Cash Reserve Requirement (CRR) at 27.5 per cent.

Similarly, he said, the MPC retained the asymmetric corridor at +200/-500 basis points around the MPR. Many Nigerians had called for a slash of the MPR as the nation's economy suffers from the impact of the coronavirus pandemic.

More From: Premium Times

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.