P
ProfRem
Guest
The Central Bank of Nigeria (CBN) has explained that the Monetary Policy Committee (MPC) left the monetary policy parameters unchanged to sustain gains so far achieved in inflation and forex stability.
The apex bank Governor, Godwin Emefiele, stated this in Abuja after the MPC decisions.
He noted that in taking the decision, members were guided by maximum flexibility to guide the economy on the path of economic growth.
Of seven MPC members that attended yesterday’s session, six voted for retention of Monetary Policy Rate (MPR) at 14 percent; Cash Reserves Ratio (CRR) unchanged at 22.5 per cent; Liquidity Ratio at 30 per cent and retention of the Asymmetric Corridor at +200 and -500 points around the MPR.
Consequently, the MPC has retained key parameters for sixth consecutive time.
The governor listed the following as reeason for retaining the rate:
1. The committee believes that the effect of fiscal policy action towards stimulating the economy has begun to manifest as evidence in the exit of the economy from the 15-month recession.
Although, seems fragile, the fragility of the growth makes it imperative to allow more time to make appropriate complementary policy decision to strengthen the recovery.
2. The committee was of the view that economic activities would become clearer between now and the Q1 of 2018 when growth is expected to have sufficiently strengthened and gained in receding inflation very obvious.
3. The evolution of key macro economy indicators, including budget implementation, economic recovery, exchange rate, inflation and employment generation.”
4. The committee reviewed the headwind confronting the domestic economy and the uncertainty in the global environment as guide in taking the decision.
5. The members expressed a strong commitment to policy flexibility that will allow the committee to promptly take the necessary action that will promote overall macro-economic stability and engender sustainable growth.
The apex bank Governor, Godwin Emefiele, stated this in Abuja after the MPC decisions.
He noted that in taking the decision, members were guided by maximum flexibility to guide the economy on the path of economic growth.
Of seven MPC members that attended yesterday’s session, six voted for retention of Monetary Policy Rate (MPR) at 14 percent; Cash Reserves Ratio (CRR) unchanged at 22.5 per cent; Liquidity Ratio at 30 per cent and retention of the Asymmetric Corridor at +200 and -500 points around the MPR.
Consequently, the MPC has retained key parameters for sixth consecutive time.
The governor listed the following as reeason for retaining the rate:
1. The committee believes that the effect of fiscal policy action towards stimulating the economy has begun to manifest as evidence in the exit of the economy from the 15-month recession.
Although, seems fragile, the fragility of the growth makes it imperative to allow more time to make appropriate complementary policy decision to strengthen the recovery.
2. The committee was of the view that economic activities would become clearer between now and the Q1 of 2018 when growth is expected to have sufficiently strengthened and gained in receding inflation very obvious.
3. The evolution of key macro economy indicators, including budget implementation, economic recovery, exchange rate, inflation and employment generation.”
4. The committee reviewed the headwind confronting the domestic economy and the uncertainty in the global environment as guide in taking the decision.
5. The members expressed a strong commitment to policy flexibility that will allow the committee to promptly take the necessary action that will promote overall macro-economic stability and engender sustainable growth.
