Central Bank of Nigeria slashes minimum rediscount

For the third time this year, the Central Bank of Nigeria has slashed the minimum rediscount rate from 16% to 14%, in a bid to encourage banks to reduce their lending rates.

The minimum rediscount rate is the rate at which the central bank lends to other banks.Ben Onyido, the bank's acting director of research, said "the essence of the downward review was to influence indirectly the level and direction of change in interest rate."

In April, the bank cut the rate from 18% to 17%, and further re