CBN MPC voted to hold MPR at 11.5%

 

 

By Financescape

 

The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted to retain the Monetary Policy Rate (MPR) at 11.5%.

 

Decisions

The MPC decided to maintain current policy parameters.

  • Monetary Policy Rate (MPR) at 11.50%.
  • The asymmetric corridor at +100/-700 bps around the MPR.
  • Cash Reserve Ratio (CRR) and Liquidity Ratio (LR) at 27.50% and 30.00% respectively.

 

 

CBN Governor, Godwin Emefiele while reading the communique at the end of the MPC meeting today stated that the Committee believes the moderate recovery in economic output in Q4-2020 was largely due to the positive impact of the monetary and fiscal policy measures implemented to reflate the economy. And the committee believes the monetary conditions are still needed to consolidate further, the weak growth achieved in Q4-2020.

 

 

The Committee noted with concerns the continued inflationary pressure and that supply-side factors remain the predominant drivers behind the inflationary pressure. In particular, the Committee expressed that the security challenges in the food-producing regions have continued to limit the gains associated with the CBN’s interventions in the agricultural sector, resulting in a shortage of food supplies to the market. Accordingly, the Committee emphasized the need for urgent fiscal measures to support productive ventures to improve aggregate supply and push down prices.

 

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