Godwin Emefiele.CBN Governor
BY NKECHI NAECHE-ESEZOBOR-The Monetary Policy Committee (MPC) of Central Bank of Nigeria on Tuesday reduced the Monetary Policy Rate (MPR) to 11.5 per cent, from 12.5 per cent.
The MPR is the interest rate at which the central bank lends to commercial banks. It ultimately affects the rates at which individuals and businesses can source loans from commercial banks as such loan rates cannot be lower than the MPR.
The reduction was announced after the MPC meeting by the Governor of the Central Bank of Nigeria, Godwin Emefiele.
The MPR is the instrument used by the Central Bank of Nigeria to control interest/ lending rates.
While delivering the communique, Mr Emefiele said other monetary policy
committee retained CRR at 27.5 percent, noting that the recent inflationary pressures is not driven by monetary policies, rather as a result of structural policies.
The committee also adjust asymmetric corridor from +200/-500 basis points and retain liquidity ratio at 30percent.
Many Nigerians had called for a slash of the MPR as the nation’s economy suffers from the impact of the coronavirus pandemic.