The Monetary Policy Committee of the Central Bank of Nigeria has reduced the Monetary Policy Rate , also known as main interest rate, to 12 . 5 per cent from 13 . 5 per cent.

The CBN Governor, Mr Godwin Emefiele, disclosed this while announcing the decision of the MPC at its meeting .

He said the committee also decided to retain the Cash Reserves Ratio at 22 . 7 per cent and the liquidity ratio at 30 per cent .

The central bank had held the MPR at 13 . 5 per cent since March 26 , 2019 when it was reduced from 14 per cent. The MPR is used to determine bank lending rates and the cost of credit for borrowers.

Early this month , the National Leader of the All Progressives Congress , Asiwaju Bola Tinubu , 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 retreat from high interest rates “ if we want investment borrowing to attain levels that actually increase private – sector growth and job creation” .

According to Tinubu , high interest rates , along with an unreliable power supply, combine to form a steep obstacle to sufficient real – sector investment , growth and productivity .

“ 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, ” he said .