The Central Bank of Nigeria's (CBN) Monetary Policy Committee has maintained the nation's monetary policy rate at 27%. During the Committee's 303rd meeting held in Abuja, Olayemi Cardoso, the governor of CBN, made this announcement at a news conference. In an economy, the MPR acts as the starting point for all other interest rates.
Additionally, the Monetary Policy Committee pledged to keep monetary policy tight.
The MPC set the Cash Reserve Ratio (CRR) at 16% for merchant banks, 45% for commercial banks, and 75% for public sector deposits that are not TSA.
Additionally, it adjusted the Standing Facilities Corridor to +50/ -450 basis points around the MPR while keeping the Liquidity Ratio (LR) at 30%.
The Committee appreciated the ongoing slowdown in headline inflation, which was fueled by persistent monetary tightening, a steady currency rate, and PMS price stability. The Committee claims that the choices demonstrate its determination to attain low and stable inflation.
Additionally, MPC stated that in order to further reduce inflation, coordinated and ongoing policy initiatives are needed.
The Committee confirmed that 16 banks have complied with regulatory obligations and recognized the progress made in bank recapitalization.
The CBN governor emphasized a medium-term rebound in the global outlook, notwithstanding the possibility that trade disputes between the US and other trading partners might limit GDP.
Additionally, MPC has predicted that in the foreseeable future, global inflation would continue to be higher than it was before to the epidemic.
In order to protect price stability and bolster the resilience of the financial system, the governor also reiterated his commitment to evidence-based monetary policy.