Central Bank Nigeria reduces lending rate to 11 percent

CBN reduces lending rate to 11 percent

The Central Bank of Nigeria ended its Monetary Policy Committee meeting in Abuja on Tuesday with a resolution to reduce Monetary Policy Ratio, popularly called lending rate, from 13 per cent to 11 per cent.The CBN governor, Godwin Emefiele, who announced the resolution of the Committee at the end of its meeting, also said members agreed to cut down on Cash Reserve Ratio for public and private sectors from 25 to 20 per cent.The CRR is a monetary policy tool used to set the minimum deposits commercial banks must hold as reserves, rather than lend out during any given period.Mr. Emefiele said that part of the key resolutions during the meeting was for the CBN to focus on playing its primary role of stimulating the growth of the economy by providing the needed funds commercial banks would use to to promote the continued operation of the real sectors of the economy.He identified the sectors that would benefit from the special funding support from the CBN to include infrastructure (with emphasis on power), agriculture and the solid minerals.–PremiumTimes

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