The Monetary Policy Committee (MPC), has retained the Monetary Policy Rate (MPR) at 13.5 per cent while other policy parameters remained constant.
Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN) made this known after the MPC’s meeting in Abuja on Tuesday.
Emefiele disclosed that all the 11 members of the committee attended the meeting and unanimously voted for the decision.
He said the committee also retained Cash Reserve Ratio (CRR) at 22.5 per cent and the Liquidity Ratio at 30 per cent.
The CBN said that the MPC also retained the Asymmetric Corridors at +200 and -500 basis points around the MPR.
He explained that the committee reviewed the upside and downside on the option to tighten, loosen or hold.
Emefiele said while tightening might encourage capital flow, it also had downside consequences of tightening the already nascent recovery outlook growth.
He said that the MPC noted that the reduction in the policy rate would improve growth prospects but in view of optic inflationary pressure, decided that the balance of the risk was in favour of protecting price stability.
According to him, considering the recovery decline in market interest rate growth in domestic, the committee feels there will be more gains in shortfall to medium term.
He further explained that in holding policy at the current position, the committee noted with pleasure the positive outcome of action already taken by the bank.
Emefiele enumerated the steps taken by CBN in this direction to include policy on loan to deposit ratio which had resulted in loans advancing and rising by N1.1 trillion between June and October.
He said this action had assisted the agriculture and manufacturing sectors hence the positive outcome on the GDP.
Car News3 years ago
Polestar is recalls over 2000 electric cars due to software bug
AVIATION3 years ago
Photo News: Air Peace commence flight operations to South Africa
Car News4 years ago
Suzuki’s 2020 V-Strom 1050 goes high-tech in high style
AUTO STAKEHOLDER3 years ago
FRSC COMMENCES ENFORCEMENT OF NATIONAL IDENTIFICATION NUMBER IN DRIVER’S LICENCE PROCESSING
Technology3 years ago
Common mistakes in CO₂ emissions calculations
WHEELSCLINIC7 years ago
Chinese-built railway turns tourist attractions in Kenya
Car News4 years ago
Super rich Banana Island residents set for new X7
Classic Cars7 years ago
Range Rover mark decades of peerless design