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BREAKING: CBN slashes interest rate to 12.5%

Thompson Nsisongabasi

May 28, 2020

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

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The MPR is the instrument used by the Central Bank of Nigeria through the MPC to control interest/ lending rates

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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.

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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.

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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.

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— Thompson Nsisongabasi

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