To arrest the current inflation, Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has agreed to reduce the Monetary Policy Rate (MPR) from 12.5% to 11.5%.
The CBN Governor, Godwin Emefiele, disclosed this on Tuesday, September 22, at the end of the MPC meeting in Abuja.
Emefiele explained that the committee retained all other policy parameters, except the asymmetric corridor that changed from +200 and -500 basis points to +100 and -700 basis points around the MPR.
Techeconomy.ng gathered that the liquidity ratio was left at 30% and Cash Reserve Ratio (CRR) retained at 27.5%.
The CBN governor explained further that the decision to reduce the MPR was to sustain ongoing economic recovery efforts.
It was learnt that Nigeria will enter recession in the third quarter of this year, and there will be growth in the fourth quarter or first quarter of 2021.