MPC cuts policy rate by 100 basis points to 12.5%

The Monetary Policy Committee (MPC) on Thursday, cut by 100 basis points the benchmark interest rate to 12.5 percent from 13.5% levels, where the rates have stayed in more than a year.

The decision to cut the key interest rate which was unanimously agreed by all members, was as a result of the weakening macroeconomic environment due to the COVID-19 pandemic and the resultant disruption of supply chains.

The committee however held other parameters constant including CRR at 27.5 percent, Liquidity ratio at 30 percent and asymmetric corridor at +200 and -500 basis points around MPR