Covid-19: CBN Introduces New Policy To Save The Economy

Covid-19: CBN Introduces New Policy To Save The Economy

Oluwafemi Fasoyin, Lagos

In other to ease the burden on Nigeria Economy, the Monetary Policy Committee of the Central Bank of Nigeria on Thursday announced reduction on the Monetary Policy Rate to 12.5 per cent.

At the end of its virtual 273rd meeting in Abuja, the CBN Governor, Mr Godwin Emefiele, announced the decision of the Committee.

At the last MPC meeting in March, MPR was retained at 13.5 per cent by the committee. 

However, it retained the Cash Reserve Ratio and the liquidity ratio at 27.5 per cent and 30 per cent respectively.

The National Leader of the All Progressives Congress, Asiwaju Bola Tinubu, early this month called on the CBN to seize the opportunity of the coronavirus crisis to lower interest rates in a bid to boost the nation’s economy.

He said the country must withdraw from high interest rates “if we want investment borrowing to attain levels that actually increase private-sector growth and job creation”.

He further disclosed that high interest rates, along with an unreliable power supply, combine to form a steep obstacle to sufficient real-sector investment, growth and productivity.

"However, the economic fallout from the coronavirus may present the best, most pressing case for revising the CBN’s high interest rate policy. The undue rates penalise domestic investment and consumer borrowing," Tinubu disclosed.

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