The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points to 13.50 per cent from 14 per cent.
The CBN Governor, Godwin Emefiele, disclosed this during a press conference at the end of a two-day MPC meeting held on Tuesday in Abuja.
This is the first time the MPR will be reduced since July 2016.
The MPC, however, held all other key parameters remain unchanged; Cash Reserve Requirement (CRR) remained at 22.5 per cent, while the liquidity ratio was kept at 30 per cent.
Emefiele explained that the cut in the rates was to support the nation’s feeble economic growth at this time. He announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.
He explained that six out of the 11 members that attended the meeting agreed to reduce the current monetary policy stance.
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.
Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.
He added that the decision was aimed at reducing the rate of unemployment and diversifying the country’s economy.