The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has cut the Monetary Policy Rate (MPR) from 12.5 per cent to 11.5 per cent.
At the end of its September meeting on Tuesday, September 22, the MPC said the majority of its members voted to reduce the monetary policy rate (MPR) by 100 basis points, from 12.5 per cent to 11.5 per cent, while adjusting its symmetric corridor around the MPR from +200 and -500 basis points to +100 and -700 basis points.
The aim is to make more money available for lending to critical sectors as the economy braces for a looming recession in the third quarter.
Also, the committee decided to retain the cash reserve requirement (CRR) at 27.5 per cent and liquidity ratio at 30 per cent.
According to the CBN Governor, Emefiele who discloses this, he said the Committee reviewed the choices before it, bearing in mind its primary mandate of price stability, and the need to support the recovery of output growth.
He added that the Committee noted the likely action aimed to address the rise in domestic prices would have been to tighten the stance of policy, as this will not only moderate the upward pressure on prices, but will also attract fresh capital into the economy, and improve the level of the external reserves.