CBN Reduces MPR to 11.5%
The Governor of the Central Bank of Nigeria(CBN) Mr Godwin Emefiele has announced the reduction of Monetary Policy Rate(MPR) to 11.5%.
Mr Emefiele stated this while reading the communique at the end of the MPC meeting in Abuja on Tuesday.
He said the MPC retained CRR at 27.5%, stating that the recent inflationary pressures is not driven by monetary policies, but as a result of structural policies. Highlights of the committee’s decision include the reduction of the MPR by 100 basis points, from 12.5% to 11.5%, adjustment of asymmetric corridor, from +200/-500 to +100/-700 basis points around the MPR, the retention of both Cash reserve ratio (CRR) and Liquidity ration at 27.5% and 30% respectively.
Emefiele noted that the Committee reviewed the choices before it, bearing in mind its primary mandate of price stability, and the need to support the recovery of output growth.
Consequently, the Committee resolved that the likely action aimed at addressing the rise in domestic prices would have been to tighten the stance of policy, as this will not only moderate the upward pressure on prices, but will also attract fresh capital into the economy, and improve the level of the external reserves.