The Central Bank of Nigeria (CBN) on Monday announced reduction of the Monetary Policy Rate (MPR) from 12.5 per cent to 11.5 per cent.
Mr Godwin Emefiele, the CBN Governor made the announcement while presenting the communiqué the 275th Monetary Policy Committee (MPC) meeting on Tuesday.
Emefiele said that the decision to reduce the MPR was made to sustain economic recovery efforts and to arrest rising inflation.
He projected that the country could enter into recession on the third quarter, while there would be growth in the fourth quarter of 2020 or first quarter of 2021.
The CBN governor said that the committee also retained Cash Reserve Ratio (CRR) at 27.5 per cent.
He said that recent inflationary pressures were not driven by monetary policies rather as a result of structural policies.
He called on commercial banks to respond to the reduction of deposit rate by also reducing interest rates on borrowing to encourage borrowing for investments.
He said air and road…
Source: Guardian Newspaper