The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained monetary policy rate (MPR) at 14 percent and all other parameters unchanged for 12 months running. Recall that the Monetary Policy Committee on July 26, 2016, voted to raise MPR from 12 percent in May, 2016 to 14 percent — the highest in at least 10 years.
It also decided that the cash reserve ratio (CRR) and liquidity ratio be maintained at 22.5 percent and 30 percent respectively.
While addressing the press in Abuja, after the MPC meeting on Tuesday, Emefiele said the committee decided to hold rates, hinging the bank’s decision on the need to halt inflation while also supporting growth.
The committee lamented insecurity in the Niger Delta, in the north-east and across regions where pockets of herdsmen activities remain violent.
Emefiele said the MPC sees the slow implementation of the 2017 budget as a challenge, calling on the fiscal authorities to speed up the process in line with this administration’s economic recovery and growth plan.
