CBN slashes interest rate, MPR, to 12.5%

Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

The Monetary Policy Committee (MPC) of Central Bank of Nigeria on Thursday reduced the Monetary Policy Rate (MPR) to 12.5 per cent, from 13.5 per cent.

The MPR is the interest rate at which the central bank lends to commercial banks. It ultimately affects the rates at which individuals and businesses can source loans from commercial banks as such loan rates cannot be lower than the MPR.

The reduction was announced after the MPC meeting by the Governor of the Central Bank of Nigeria, Godwin Emefiele.

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

While delivering the communique, Mr Emefiele said other monetary policy parameters remained unchanged.

He said the MPC resolved to retain the Liquidity Ratio at 30 per cent and the Cash Reserve Requirement (CRR) at 27.5 per cent.

Similarly, he said, the MPC retained the asymmetric corridor at +200/-500 basis points around the MPR.
Many Nigerians had called for a slash of the MPR as the nation’s economy suffers from the impact of the coronavirus pandemic.

Coronavirus factsheet


PT Mag Campaign AD

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


TEXT AD: To advertise here . Call Willie +2347088095401...

BE THE FIRST TO KNOW! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application