The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) 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.
The CBN Governor, Mr Godwin Emefiele, disclosed this while presenting the decisions of the Monetary Policy Committee, MPC, after its two-day meeting in Abuja on Tuesday, September 22.
Emefiele said: “After the consideration of the three policy options, members were of the opinion that the option to loose will complement the Bank’s commitment to sustain the trajectory of the economic recovery and reduce the negative impact of COVID-19. In addition, the liquidity injections are expected to stimulate credit expansion to the critically impacted sectors of the economy and offer impetus for output growth and economic recovery.”