Home / Business / CBN cuts interest rate to 13.5%, seeks GDP rebasing

CBN cuts interest rate to 13.5%, seeks GDP rebasing

The Monetary Policy Committee of the Central Bank of Nigeria has reduced the monetary policy rate, also known as the benchmark or main interest rate, from 14 per cent to 13.5 per cent.

The MPR, which is used to determine bank lending rates and the cost of credit for borrowers, had been held at a record high of 14 per cent since July 2016 when it was hiked by 200 basis points from 12 per cent.

The CBN governor, Mr Godwin Emefiele, who announced the decision of the MPC at the end of a two-day meeting in Abuja, explained that six members out of 11 who attended the meeting agreed to reduce the current monetary policy stance.

ALSO READ:  Reps postpone plenary till April 2 for budget defence

 He said while the MPR was reduced to 13.5 per cent, the committee decided to retain the cash reserves ratio at 22.5 per cent, the liquidity ratio at 30 per cent; and the asymmetric window at +200 and -500 basis points around the MPR.

Mr.  Emefiele said the decision to reduce the rate was taken in the overall interest of the economy, as there was a need to have a refocus on monetary tightening.

This, he stated, would help to increase the level of credit from the banking sector to businesses.

Check Also

Osinbajo The Trent Yemi

It Is Not The Ability To Father A Child That Makes You A Father – Osinbajo

Osinbajo Vice-president, professor Yemi Osinbajo has stated that men must honour women and stop treating …

nycn

Rate Of Suicide Among Youth, Worrisome – NYCN

NYCN The National Youth Council of Nigeria has called on the federal government to establish …

Dr. Kayode Fayemi

Fayemi Promises To Re-Commence Payment Of Stipend To Elders, Others

Dr. Kayode Fayemi Ekiti state governor, Dr. Kayode Fayemi has promised that his administration will …

Leave a Comment

WhatsApp Contact us
OSBC MOBILE

FREE
VIEW