The Central Bank Monetary Policy Committee on Tuesday reduced the Monetary Policy Rate (MPR) from 13% to 11% in a sign that the bank is serious about stimulating a struggling economy. The Central Bank also cut its unified CRR from 25% to 20% for the second straight month hoping that will pump more money into the economy.
Data available to Nairametrics confirm this will be the first time in about six years that the Central Bank will cut its MPR. The last time MPR was cut was in July 2009 when it cut rates from 8% to 6%. That was Sanusi Lamido Sanusi’s very first MPR.
From then on rates had doubled to 12% by October 2011. It remained at 12% between October 2011 to November 214 or 34 straight months. The CBN then increased rates to 13% in December 2015 as it scrambled to respond to the falling price in crude oil.