The 12.5 Percent MPR Review and the Implications for a Pressured Economy

The Central Bank of Nigeria (CBN) recently announced the review of its Monetary Policy Rate (MPR) from 13.5 percent to 12.5 percent. The CBN Governor disclosed this at the end of the Monetary Policy Committee (MPC) meeting in Abuja. The review was orchestrated by the impact of the COVID-19 pandemic on the economy, the increased inflationary pressure, and the restrictions in international trade.