CBN AGREES TO REDUCE INTEREST RATE

Written by on March 27, 2019

Six of the 11 members of the Monetary Policy Committee (MPC), have voted to decrease the Monetary Policy Rate by 50 basis points to 13.5% two years after pegging the interest rate on lending between Money Deposit Banks at 14%.

The MPC, which is composed of the governor and deputy governors of the Central Bank of Nigeria (CBN), after indications that the economy could absorb increased lending to the real sector of the economy, voted for a reduction in the inter-bank lending rate.

In the communiqué issued by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, at the end of its two-day meeting, the MPC also noted that the government has been unable to generate revenue to support development as spelt out in the Economic Recovery Growth Plan (ERGP).

Meanwhile, the 11-member team, whose policy influence is limited to borrowing rates and foreign exchange matters, urged the Nigerian government and the fiscal policy team, to closely monitor the public procurement process.


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