The apex monetary authority of Nigeria is reducing the MPR first time since July 2016.
Godwin Emefiele, CBN governor, announced the new rate during a press conference at the end of a two-day MPC meeting in Abuja.
However, according to the MPC, all other key parameters: Cash Reserve Requirement (CRR) remains 22.5 per cent, while the liquidity ratio is 30 per cent.
Emefiele noted that the cut in the rates was to support Nigeria’s feeble economic growth.
He added that the decision was aimed at reducing the rate of unemployment and diversifying Nigeria’s economy.