CBN reduces MPR to 12.5%

The Monetary Policy Committee (MPC) of Central Bank of Nigeria on Thursday reduced monetary policy rate (MPR), or the controlling lending rate to 12.5 per cent.

It, however, left other monetary policy parameters unchanged.

Reading the communique of the meeting, CBN Governor, Mr Godwin Emefiele, said the MPC resolved to retain the Liquidity Ratio at 30 per cent, Cash Reserve Requirement (CRR) at 27.5 per cent and the asymmetric corridor at +200/-500 basis points around the MPR.

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

This is the seconding MPC meeting in row that will be held under COVID-19 protocols. While delivering the communique, CBN Governor, Godwin Emefiele said other monetary policy parameters remained unchanged.

Emefiele said the MPC resolved to retain the Liquidity Ratio at 30 per cent, Cash Reserve Requirement (CRR) at 27.5 per cent and the asymmetric corridor at +200/-500 basis points around the MPR.

It would be recalled that some weeks ago ,  former governor of Lagos State, Bola Ahmed Tinubu had clamoured for the reduction of interest rates so that investors and manufacturers can access fund at a cheaper rate.

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Adejayan is an award-winning Journalist and Opinion writer with varied experience in Nigeria. Mail me at AdejayanOluwagbenga@withinnigeria.com. See full profile on Within Nigeria's TEAM PAGE
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