Recession: Nigeria’s Apex bank retains MPR at 11.5%
In order for Nigeria to quickly exit recession and facilitate economic recovery, The Nation’s Apex bank has retained the benchmark interest rate, which is measured by the Monetary Policy Rate (MPR) at 11.5%.
The Central Bank of Nigeria (CBN) made this disclosure at the conclusion of the two-day monetary policy committee (MPC) meeting held in Abuja.
MPR is the interest rate at which CBN lends to the commercial banks. It’s the benchmark against which other lending rates in the economy are pegged and is usually used as an instrument to moderate inflation in the economy
Reading the communiqué, the Governor of the CBN, Mr Godwin Emefiele, said the committee, at the gathering, felt it was the best decision for the national interest rate should be left at the current level.
The committee also retained the Liquidity Ratio at 30 percent and Cash Reserve Ratio (CRR) at 27.5 percent.
CBN boss said this was to allow the different measures put in place by the fiscal and monetary authorities to achieve the needed results and quicken the exit of Nigeria from recession.
Last Saturday, the National Bureau of Statistics (NBS), said the nation’s gross domestic product (GDP) contracted by 3.62 per cent in the third quarter of 2020 and because of the 6.10 per cent decline in GDP in the second quarter of the year, the country officially entered a recession.
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