BREAKING: CBN Retains All Monetary Policy Rates

Nine out of the ten members voted to retain the rates.

The CBN governor, Godwin Emefiele while reading the communique in Abuja on Tuesday following the Monetary Policy Committee meeting, stated that the monetary policy rate for banks and businesses was retained at 14 per cent, while Cash Reserve Ratio (CRR) was left at 22.5 per cent and liquidity ratio at 30 per cent, with the asymmetric corridor at +200 and -500 basis points around the MPR.

The CRR sets the specified minimum fraction of customers’ total deposits commercial banks can hold as reserves either in cash or deposits with the Central Bank.

“In summary, the MPC decided to: Retain the MPR at 14 per cent , Retain the CRR at 22.5 per cent; Retain the Liquidity Ratio at 30.00 per cent; and Retain the Asymmetric corridor at +200 and -500 basis points around the MPR,” he said.

The apex bank’s decision was not far from the expectation of experts, because even when they expect government to stimulate the economy through fiscal policies, they also expect a tight monetary conditions to check inflation.

The CBN has been working tirelessly to maintain a tight monetary policy in the face of the economic recession.

Speaking at the post-MPC meeting briefing, Mr. Emefiele, who doubles as the Chairman of the Committee, said the apex bank will not relent in its policy to pump more dollars into the foreign exchange market, while assuring that speculators will continue to lose money.