The monetary policy committee of the Central Bank of Nigeria (CBN) has announced that the monetary policy rate (MPR), which determines interest rate, will be reduced by 100 basis points from 12.5 percent to 11.5 percent.
Godwin Emefiele, the CBN governor, announced the committee’s decision on Tuesday at the end of its two-day meeting.
This means that the cost of getting a loan will reduce.
Emefiele said the committee retained the cash reserve ratio at 27.5% because it was of the opinion that the recent inflationary pressures are driven by structural policies not monetary policy. (The Cable)