The monetary policy committee of the Central Bank of Nigeria (CBN) has reduced the monetary policy rate to 12.5% from 13.5%.
CBN’s governor, Godwin Emefiele, made this announcement at the end of the committee’s meeting on Thursday.
The apex bank also retained its Cash Reserve Ratio (CRR) at 27.5 percent and liquidity ratio at 30 percent.
MPR is the interest rate at which CBN lends to the commercial banks and also the benchmark against which other lending rates in the economy are pegged.
A reduction in the MPR rate tends to make lending cheaper and helps to further stimulate the economy.
