Economists urge CBN to reduce lending rates as MPC meets

Some finance and economic experts on Monday urged the Central Bank of Nigeria to compel the Deposit Money Banks to reduce the high interest rate currently being charged by banks on lending.

They said with the current economic challenges facing the country as a result of the outbreak of the coronavirus, time had come for banks to reduce their lending rates in order to support the growth of key sectors of the economy.

While the Monetary Policy Rate of the CBN is pegged at 13.5 per cent, the lending rate by banks to businesses hovers between 20 and 26 per cent.

The Monetary Policy Committee is currently meeting in Abuja to review the monetary and economic conditions and recommend measures for the next two months.

 

 

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