The Monetary Policy rate which was at 13.5% was slashed by the Central Bank of Nigeria’s Monetary Policy Committee to 12.5% on Thursday.
This was disclosed following the committee’s meeting with Godwin Emefiele, CBN’s Governor.
While making the official statement, he announced that other Monetary Policy parameters aren’t changed.
He made known that the Monetary Policy Committee decided to keep the liquidity ratio and Cash Reserve Requirement at 30% and 27.5% respectively.
Also, the committee kept the asymmetric corridor at +200/-500 basis points around the Monetary Policy Rate.
Following the impact of the pandemic disease in the country, some Nigerians have requested a reduction of MPR during this critical time as the country’s economy is impacted by the outbreak.
The MPR is the interest rate at which CBN lends to commercial banks.
It also influences the rates at which businesses and individuals get loans from these commercial banks.
The Monetary Policy Rate must always be higher than these loan rates.
