CBN reduces MPR from 14% to 13.50%, retains CRR at 22.5%

The Monetary Policy Committee of the Central Bank of Nigeria has reduced the Monetary Policy Rate (MPR) from 14% to 13.50%.

The committee, however, retained the Cash Reserve Ratio, (CRR) at 22.5%.

The decision was taken on Tuesday at the end the committee’s quarterly meeting.

Recall that the Cash Reserve Ratio in Nigeria averaged 12.04 percent from 2007 until 2019, reaching an all-time high of 31 percent in May 2015 and a record low of 1 percent in April 2009.

Many stakeholders in various economic sectors had complained that the old interest rate regime only favours trading and not manufacturing or production. They had argued that the consequence has been low contributions from manufacturing and production to the GDP of the country, implying that production and manufacturing have been low in the economy while importation has been high with the attendant consequences.

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