The Central Bank of Nigeria (CBN) yesterday resolved to retain the Monetary Policy Rate (MPR), the benchmark interest, at 27.50 per cent, with the asymmetric corridor of +500/-100 basis points around the MPR.
The apparent halt in the bank’s tightening regime came against the backdrop of recent stability in the Foreign Exchange (FX) market with the resultant appreciation of the exchange rate and gradual moderation in the price of Premium Motor Spirit (PMS).
The central bank also left all monetary policy parameters unchanged, including the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 50 per cent, and that of Merchant Banks at 16 per cent as well as the Liquidity Ratio (LR) at 30 per cent.
Addressing journalists at the end of the two- day meeting of the Monetary Policy Committee (MPC) in Abuja, CBN Governor, Olayemi Cardoso, said the committee was unanimous in its decision to hold rates at current levels.
He expressed satisfaction with recent macroeconomic developments, which were expected to positively impact price dynamics in the near to medium term.
Cardoso also said there had been greater confidence in the markets, a key ingredient that was missing in the equation.
