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Nigerian apex bank reduces monetary policy rate to 12.5%

The Central Bank of Nigeria has reduced its monetary policy rate to 12.5 percent, down from 13.50% as part of…

The Central Bank of Nigeria has reduced its monetary policy rate to 12.5 percent, down from 13.50% as part of efforts to combat the economic effects of the coronavirus pandemic.The Governor of the CBN, Mr. Godwin Emefiele, announced during the Monetary Policy Council briefing on Thursday that the apex bank retained its Cash Reserve Ratio (CRR) at 27.5 percent and liquidity ratio at 30 percent.

According to the report by Nigeria’s Channels Television, the MPR is the interest rate at which the CBN lends to the commercial banks and also the benchmark against which other lending rates in the economy are pegged.

It added that a reduction in the MPR rate tends to make lending cheaper and helps to further stimulate the economy.

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