CBN retains monetary policy parameters

Godwin Emefiele, Governor of Central Bank of Nigeria (CBN)
Godwin Emefiele, Governor of Central Bank of Nigeria (CBN)

The Central Bank of Nigeria has resolved to leave all monetary policy parameters unchanged.

It took the decision on Tuesday at its first Monetary Policy Meeting since it reduced the lending rate last March.

At the end of the meeting in Abuja, the CBN governor, Godwin Emefiele, said nine of the 11 members in attendance voted to retain the lending rate, otherwise known as the monetary policy rate (MPR), at 13.5 per cent.

Also, Mr Emefiele said the committee resolved to maintain the cash reserve requirement (CRR) at 22.5 per cent and liquidity ratio at 30 per cent, with the asymmetric corridor of +200 and -500 basis points around the MPR.

The CRR is the fund kept with the CBN as a minimum deposit a commercial bank must hold as reserves.

The meeting adjusted the MPR slightly from 14 per cent to 13.5 per cent during the last MPC meeting in March. Until then, the rate was unchanged for 13 consecutive times since July 2016.

During the meeting, Mr Emefiele said the Committee thanked President Mohammadu Buhari for reappointing him as the CBN governor.

According to the CBN governor, the decision will ensure stability in monetary policy and consolidation of the progress in maintaining the growth of the economy.

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