CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

MPC slashes interest rate to 12.5%

NEWS DIGEST – The Monetary Policy Committee (MPC) of Central Bank of Nigeria has reduced Monetary Policy Rate (MPR), to 12.5 per cent.

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.

A few weeks back Asiwaju Bola Ahmed Tinubu had called on the CBN to reduce interest rates so that investors and manufacturers can access fund at a cheaper rate.