The Central Bank for the 15th straight month has decided to keep Monetary Policy Rate ( MPR) at 12 per cent with a corridor of +/- 200 basis point. The Cash Reserve Requirement at 12 per cent and the Liquidity ratio at 30 per cent.
“The Committee considered and decided by a majority of 7 votes to hold and 3 votes to reduce the MPR by 50 basis points. Thus, by a majority vote of 7 members to 3, the MPC voted to maintain the current policy stance i.e. retain the MPR at 12 per cent with a corridor of +/-200 basis points around the MPR; retain the Cash Reserve Requirement at 12 per cent and Liquidity Ratio at 30 per cent; with the Net Open Position at 1.0 per cent”.
Government to blame??
“the Committee would not just change rates for change’s sake nor undertake such a risk at the moment because of the imminent inflationary threat posed by Federal Government’s high expenditure profile particularly with the recent emergency rule declaration in the three North -Eastern states and Government’s continued subsidy administration and fuel import”.