Nigeria’s Central Bank on Tuesday cut policy interest rate for the first time in almost four years.

At the end of its two-day rate setting meeting, the CBN Chief, Godwin Emefiele announced a 200 points cut to 11% in headline interest rate from 13% previously.

The financial regulator also shaves-off the Cash Reserve Ratio (CRR) sharply from 25% to 20%, the deepest cut in the harmonised rate following a smaller easing done by the CBN last September.

The decision to cut both the policy rate and the harmonised cash reserve ratio, the CBN Governor said, was to engineer growth by increasing the flow of lending to critical sectors of the economy like agriculture, solid minerals, critical social infrastructure and manufacturing.

Also, the House of Representatives has urged the Central Bank of Nigeria (CBN) to review the limits placed on online transactions upwards.

The lawmakers are asking the apex bank to move the limits from 300 thousand Dollars to 500 thousand Dollars and point of sale transactions from one thousand dollars to five thousand dollars.

Their request came on Tuesday after deliberations on a motion by Representative Edward Pwajok on the challenges being faced by Nigerians in the course of their financial transactions.

The motion was unanimously supported by members and passed, mandating its Committee on Banking to examine the implementation of the cashless policy by business outfits and government agencies in Nigeria. (Channels TV)

•Photo shows CBN Gov. Emefiele.