CBN: Monetary Policy Committee retains MPR at 13.5%

The Monetary Policy Committee (MPC) has retained the Monetary Policy Rate (MPR) at 13.5 percent.

Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), made the fact known after the MPC meeting in Abuja on Friday.

Emefiele disclosed that nine out of 11 members of the committee attended the meeting.

The committee also retained Cash Reserve Ratio (CRR) at 22.5 percent and the Liquidity Ratio at 30 percent.

He explained that the development was a decision of the nine members of the committee who were in attendance at the meeting and voted unanimously for retention for the progress and development of the economy.

Emefiele said in considering specific policy options of whether to loosen, tighten or hold, the committee considered the growth of the economy as being imperative and the management of price stability sacrosanct.

According to him, tightening policy is not an option at this time, while loosening will drive growth in consumer credit without corresponding adjustment.

He said the committee also noted a positive moderation in inflation although slowly from 11.08 in July to 11.02 in August.

Meanwhile, the committee advised the government to adopt ‘big bank approach’ towards building fiscal buffer by purposefully freeing up redundant assets through efficient and effective privatization process.

The step would raise fiscal revenue for the government and resuscitate redundant assets. It will also generate employment as well as contribute to the growth of the economy.

Amaka E. Nliam