Recession: CBN Retains Lending Rate At 11.5%

The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 11.5 per cent.

The CBN Governor, Godwin Emefiele, disclosed this after the committee’s two-day meeting in Abuja on Tuesday.

It also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

At the last MPC meeting in September, the committee reduced the MPR from 12.5 per cent to 11.5 per cent.

This is coming days after Nigeria entered second recession in five years as official figures published on Saturday show that the economy shrank again in the third quarter of this year.

This year’s recession, occasioned by the economic fallout of the COVID-19 pandemic, is worse than that of 2016.

The bank had said in June that the collapse in crude oil prices, coupled with the COVID-19 pandemic, was expected to “plunge the Nigerian economy into a severe recession, the worst since the 1980s”.

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