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CBN Moves Lending Rate From 13% To 11%

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CBN Governor, Godwin Emefiele

The Central Bank of Nigeria has fixed the Monetary Policy Ratio in the country at 11 per cent after ending its Monetary Policy Committee meeting in Abuja on Tuesday.

Rousing from Committee Meeting, the apex bank moved the lending rate, from 13 per cent to 11 per cent.

Announcing this decision shortly after the meeting, the CBN governor, Godwin Emefiele, said members also agreed to cut down on Cash Reserve Ratio for public and private sectors from 25 to 20 per cent.

The CRR is a monetary policy tool used to set the minimum deposits commercial banks must hold as reserves, rather than lend out during any given period.

The key focus, Emefiele said was for the apex bank to focus on playing its primary role of stimulating the growth of the economy by providing the needed funds commercial banks would use to promote and further boost continued operation of the real sectors of the economy.

The CBN boss identified the key sectors that would be assisted with the special funding package from the CBN to include infrastructure especially power, agriculture and the solid minerals.

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