CBN Extends Interest Reduction on Intervention Loans till 2022

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* Again, retains MPR at 11.5%

James Emejo in Abuja

The Central Bank of Nigeria (CBN) Tuesday resolved to leave all monetary policy parameters unchanged in a continued efforts to stimulate the economic growth.

The apex bank retained the Monetary Policy Rate (MPR) otherwise known as interest rate at 11.5 per cent with the asymmetric corridor of +100/-700 basis points around the MPR.

It further retained the Cash Reserve Ratio (CRR) at 27.5 per cent as well as the Liquidity Ratio at 30 per cent.

Addressing journalists at the end of a two-day MPC meeting, CBN Governor, Mr. Godwin Emefiele, also announced that the apex bank has extended the 5 per cent interest rate, which was introduced on all its facilities, by an additional 12 months.

The CBN had cut the interest on its loans last year from 9 per cent to 5 per cent to help mitigate the impact of COVID-19 on businesses.

The moratorium was to last till March 2021 before Emefiele announced a further extension in view of the second wave of the pandemic and the resulting impact on the economy.

Details later…