CBN cuts interest rate from 14% to 13.50%

The Central Bank of Nigeria (CBN) on Tuesday announced that it has reduced the Monetary Policy Rate (MPR) from 14% to 13.50%.

This was disclosed by the CBN Governor, Godwin Emefiele during a press conference at the end of the Monetary Policy Committee (MPC) meeting held in Abuja.

Government in a bid to regulate the affairs of the economy would always use MPR as one of its instruments; which is an interest rate at which CBN lends to commercial banks and other clients.

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This is the first time the MPR will be reduced after it was raised by 200 basis points from 12 percent to 14 percent since July 2016.

The MPC, however, held all other key parameters, including the Cash Reserve Ratio (CRR) which is a 22.5 per cent remained unchanged.

He stated that the move was expedient in order to stabilize the nation’s economy and reduce the rate of unemployment.

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