31.9 C
Saturday, November 28, 2020
- Advertisement -

CBN Cuts Monetary Policy Rate


CNN and the Ethics of Journalism – By Lai Mohammed

Our attention has been drawn to an ‘investigation’ by CNN, entitled ‘How a Bloody Night of Bullets Quashed a Young Protest Movement’...

Drug Use: The Forgotten Epidemic – By M. Buba Marwa and Oliver Stolpe

In 2018, the National Bureau of Statistics (NBS) in cooperation with the United Nations Office on Drugs and Crime and the European...

Understanding the American Three-Stage Presidential Election – By Solomon Ukhuegbe

The United States presidential election of November 3, 2020 eclipsed the election at the same time for all seats of the U.S....

Bukola Saraki’s Homecoming – By Alabi Olayemi

Former Senate President Bukola Saraki breezed into Ilorin, the capital city of Kwara State, on Saturday November 14. The day coincided with...

The Central Bank of Nigeria (CBN) announced a cut in the Monetary Policy Rate (MPR) from 12.5 per cent to 11.5 per cent on Monday.

Central Bank Governor Godwin Emefiele announced this while presenting the communiqué the 275th Monetary Policy Committee (MPC) meeting on Tuesday.

Mr Emefiele said that the decision to reduce the MPR was made to sustain economic recovery efforts and to stem the rapid rise ininflation.

He projected that the country could enter into recession in the third quarter, while there would be slight growth in the fourth quarter of 2020 or first quarter of 2021.

Mr Emefiele said that the committee also retained Cash Reserve Ratio (CRR) at 27.5 per cent. He said that recent inflationary pressures were not driven by monetary policies but structural policies.

He asked commercial banks to respond to the CBN’s decision to cut rates by implementing cuts in lending rates to encourage borrowing and stimulate the economy.

Mr Emefiele said that certain sectors such as those involved in air and road transportation, accommodation and food services were heavily affected by economic disruptions brought about by the COVID-19 pandemic. He called for more aggressive funding of those sectors to stimulate economic growth.

“Management was directed to ensure that deposit money banks respond to lowering of interest on deposit rate by aggressively lowering cost of credit to borrowers.

“Sectors like air and road transportation, entertainment and accommodation, food services and education were most adversely affected by the lockdown.

“Committee suggested that more effort be put in place to continue to provide relief and funding to those sub sectors to catalyse growth,” he said.

- Advertisement -
- Advertisement -

Business Profiles

Maria Kiwanuka

Maria Kiwanuka is the Chairperson of the Board of Directors UBA Uganda. Maria Kiwanuka is an Economist by profession and a former...

Chioma Mang

Chioma is a seasoned banker with almost 3 decades of combined experience at top management and executive levels in banking spanning Treasury...

Ebele Ogbue

Ebele Ogbue is the General Manager, UBA Energy Bank at United Bank for Africa (UBA) Plc. His responsibilities are to acquire, deepen...

Kenneth Orji

Mr. Orji was educated at the University of Ibadan, Nigeria where he was a J. F. Kennedy Scholar, having emerged national first...

Kubi Momoh

Kubi Momoh is the Chief Risk Officer at NOVA Merchant Bank Limited. She was previously the Chief Risk Officer, UBA Africa with...