Expert Expects Retained Rates As CBN Holds MPC

Ahead of the two-day Monetary Policy Committee meeting starting on Monday (today), a financial expert has said the Central Bank of Nigeria is expected to retain the Monetary Policy Rate.

The CBN had at its meeting in May retained the MPR at 11.5 per cent, the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

Speaking with our correspondent, a former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said, “I don’t expect any change because nothing has seriously changed. Until Nigeria starts to produce, any change will be in the short run. But in the long run, it will come back to the original position.

“Until there is enabling environment for productive sector and we start producing and attract both foreign and local investor, it becomes difficult; so, we need to address all the challenges because the economy is just producing marginally.”

Ahead of the MPC meeting, the CBN has reiterated the resilience, safety and soundness of Deposit Money Banks and other financial institutions under its supervision.

A statement on Saturday said that the acting Director, Corporate Communications Department of the Bank, Osita Nwanisobi, said this in Abuja.

He said the Nigerian banking system had proved to be very sturdy in spite of the global challenges posed by the coronavirus pandemic, in response to certain false and unfounded stories circulating in the social media attacking the soundness and safety of some Nigerian banks.