The Central Bank of Nigeria (CBN) has cut the Monetary Policy Rate (MPR) to 23 per cent from its former value of 26.5%.
The slash of the MPR also known as the interest rate was a major outcome of the 307th meeting of the Monetary Policy Committee (MPC) in Abuja.
Eleven members of the MPR voted for the new rate
The reduction marks a 350-basis-point adjustment of the interest rate thus, bringing the MPR from 26.5% to 23%.
The committee also took a far-reaching decision on the Standing Facilities Corridor by recalibrating it.
It also retained existing Cash Reserve Requirement (CRR) levels for Deposit Money Banks, commonly known as commercial banks; for Merchant Banks and non-TSA public sector deposits.
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Before the latest development, the MPR remained at 26.5% following the committee’s meeting in July.
The Eagle reports that the Monetary Policy Rate (MPR) is a key element of the fiscal policy of a country, usually under the purview of its Central Bank.
It influences transactional decisions in the economy by determining commercial lending and deposit rates.
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