The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 11.5%. It also left other parameters the same. The CBN Governor, Godwin Emefiele, disclosed this.
In summary, the MPC voted to retain the MPR at 11.5%, retain the asymmetric corridor of +100/-700 basis points around the MPR, retain the Cash Reserves Ratio at 27.5% and retain the Liquidity Ratio at 30%,” he said.
Emefiele also said the medium-term outlook of the global economy was beginning to show a ray of optimism following the discovery of covid-19 vaccines, and Nigeria was expected to recover from recession by end of 2020.
He said in the domestic economy, available data and forecasts for key macroeconomic variables suggested optimism in output growth in the fourth quarter of 2020, due to the positive outlook for most economic activities.
“Accordingly, the economy is expected to recover from recession by the end of 2020, while inflation is projected to moderate by the first quarter of 2021”, he said.
Commenting on the outcome of the MPC meeting, the Director-General, Lagos Chamber of Commerce, Dr. Muda Yusuf, said the outcome was expected.
He said. “The CBN has practically exhausted its policy arsenal as far as credit stimulus to the economy is concerned. “The economy has been evidently impacted by the monetary policy measures.
“We have a multitude of intervention funds, the Loan to Deposit Ratio, guidelines on treasury bills, Federal Government Bonds and Open Market Operations”.
However, he said, the bigger issue for many businesses was the liquidity crisis in the foreign exchange market.
The Punch, Nov. 25, 2020
|ITPC LAGOS & NICA SUSTAINING TRADE RELATIONS BETWEEN INDONESIA & NIGERIA|
|Nigeria’s economy moving in right direction but slow|
|Lagos tops Nigeria’s investment destination with $8,304bn capital inflow|
|Forex crisis, major nightmare facing manufacturers, says MAN|
|Customs awaits directives on tariffs for goods covered by AfCFTA agreement|