The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, has reduced the Monetary Policy Rate, MPR, by 50 basis points to 13.50 per cent from 14 per cent.
CBN Governor, Godwin Emefiele, disclosed this on Tuesday at a press conference to mark the end of a two-day MPC meeting held in Abuja. The MPR is the rate at which the Central Bank lends to the commercial banks.
It is the first time the MPR is being reduced since July 2016. However, the MPC held that all other key parameters remain unchanged; Cash Reserve Requirement, CRR, remained at 22.5 per cent, while the liquidity ratio was kept at 30 per cent.
Emefiele explained that the cut in the rates was to support the nation’s feeble economic growth at this time. He added that the decision was aimed at reducing the rate of unemployment and diversifying the country’s economy.