MasterwebNews 21/9/16 - Nigeria`s Monetary Policy Committee Maintains Status quo on all Monetary Policy Instrument

[ Masterweb Reports ] - The Monetary Policy Committee (MPC) of the Central Bank of Nigeria, a body that formulates monetary policy in Nigeria, Africa biggest economy decided on Tuesday to retain all monetary policy instruments as they were in August.

 

Hence Monetary Policy Rate (MPR) which determines the interest rate charged by commercial banks remained at 14 percent while Cash Reserve Ratio (amount of cash expected that the commercial banks keep with the CBN) remains at 22.5 percent.

 

The Committee’s decision was based on its assessment of the relevant risks in the economy.  The Committee according to Godwin Emefiele, Governor of Nigeria’s Central Bank, concluded that the economy continues to face elevated risks on both price and output fronts.

 

“However, given its primary mandate and considering the limitations of its instruments with respect to output, the Committee elected to retain the current stance of 30 policy. Conscious of the need to allow this and other measures like the foreign exchange market reforms to work through fully, the Committee decided to retain all the monetary policy instruments at their current levels”, the MPC Communique stated in part .

 

Liquidity Ratio also remains at 30.00 per cent while the Asymmetric Window stands at +200 and -500 basis points around the MPR. [businesswise]

 

*Photo Caption - Naira notes

 
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