The Central Bank of Nigeria (CBN) has rescheduled the last Monetary Policy Committee (MPC) meeting for the year.
The meeting which was scheduled to hold on Monday the 19th of November and Tuesday the 19th of November 2018, will now take place on Wednesday the 21st of November 2018 and Thursday the 21st of November 2018.
The shift in date was due to the government declaring Tuesday the 2oth of November 2018, as a public holiday to mark the Eid El Malud celebrations.
At the last MPC
The last MPC meeting took place on the 24th and 25th of September, 2018. The committee left the Monetary Policy Rate at 14% and other parameters unchanged, for the 12th time running.
About the MPC
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is made up of 12 members of which the CBN Governor is the Chairman.
The committee’s mandate is to facilitate the attainment of macroeconomic objectives such as economic growth, price stability (which includes inflation, interest rates and exchange rates) and providing economic policy support to the Government.
The committee’s primary tools of doing so, are the Monetary Policy Rate, Liquidity ratio and Cash Reserve Ratio.
MPR is the interest rate at which CBN lends to the commercial banks. The MPR is the benchmark against which other lending rates in the economy are pegged and is usually used as an instrument to moderate inflation in the economy.
CRR simply refers to the ratio of customer deposits (i.e. your money in the bank) banks are expected to hold as cash or keep with the CBN.
Liquidity ratio refers to the amount of highly liquid assets that banks should hold in order to meet their financial obligations to customers