From Uche Usim, Abuja
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) rose from its 275th meeting on Tuesday with a decision to reduce the Monetary Policy Rate (lending rate) from 12.5% to 11.5%.
The Chairman of MPC and CBN Governor, Mr. Godwin Emefiele made the disclosure at a virtual media briefing after the meeting.
According to him, the committee retained all other policy parameters, except the asymmetric corridor that changed from +200 and -500 basis points to +100 and -700 basis points around the MPR.
The liquidity ratio was left at 30% and Cash Reserve Ratio (CRR) retained at to 27.5%.
Emefiele said the decision to reduce the MPR was to sustain ongoing economic recovery efforts and arrest rising inflation.
He proposed that Nigeria will enter a V-shaped recession, meaning it be entered into and exited almost immediately.
This means that Nigeria will enter recession in the third quarter of this year and there will be growth in the fourth quarter or first quarter of 2021.