JUST IN: CBN begins rate easing, cuts lending rates to 13.5%

Rising from its  March 2019 Monetary Policy  Committee meeting ((MPC), the Central Bank of Nigeria (CBN) has cut lending rate from 14 percent to 13.50 percent.

This is the first rate cut in about two years. The CBN had held rates constant as it struggle to keep inflationary pressure down.

Also, in spite the consistent calls by industry watchers and the government for rates easing to spur investments, the CBN had kept the rates constant citing high inflation.

This rate cut is expected to impact lending rate as banks would be expected to lend a bit lower than the current over 25 percent rate depending on the nature of the facility and the tenure.

The CBN governor, Godwin Emefiele, at the MPC press briefing explained that easing will help consolidate the recent economic gains, drive investments and create new jobs.

“Having been on this part, particularly the MPC at about 14 percent since July 2016, and with the relative stability we have seen in the economic variables over the last two to two and half years, we just think that this should be the next phase where we should be talking about consolidating growth,” Emefiele said.

Mr. Bismarck Riwane, an analyst and CEO at Economic Derivatives described the timing of the rate cut as “interesting” even as he lauded the move.

Details later…