Why CBN retained monetary policy parameters

By Chioma Obinagwam

The Central Bank of Nigeria at the 282nd Monetary Policy Committee (MPC) meeting retained the benchmark lending rate, Monetary Policy Rate (MPR) at 11.5 percent.

Confiance News gathered from the apex bank on Tuesday during a press briefing chaired by the CBN governor, Godwin Emefiele.

Apart from retaining the MPR, it left other key monetary parameters unchanged.

He said that the committee voted to retain asymmetric corridor of +100 and -700 basis points around the MPR, Cash Reserve Ratio (CRR) at 27.5 percent and Liquidity Ratio (LR) at 30 percent.

Recall that Confiance News had earlier reported that the CBN would retain the parameters despite moderate economic recovery.

Part of the reasons the committee agreed to retain the parameters, Emefiele noted, was to engender growth recovery.

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