Nigeria cuts monetary policy rate to 11 pct

The Nigerian government on Tuesday announced it has slashed the cash reserve requirement from 25 percent to 20 percent and the monetary policy rate from 13 to 11 percent.

Central Bank Governor Godwin Emefiele made the announcement in Abuja, the nation's capital city after the bank's Monetary Policy Committee meeting.

The cut was part of efforts by the government to improve the country's economy, the apex bank chief told reporters.

Emefiele said the cut would also ensure that more funds were released to Deposit Money Banks (DMBs) to boost lending to Agriculture and Solid Minerals sector.

According to him, this will improve their productivity and provide added avenues of job creation.

Emefiele said the committee came to the decision in consideration of the weakening economy, particularly the low output growth, rising unemployment and the uncertainty of the global economic environment.

The apex bank chief said the committee underscored the need for banks to ensure that measures taken to stimulate the economy translate into increased lending to the sectors with sufficient employment capabilities and the potential to generate growth. Endit