The committee also voted to retain cash reserve ratio at 22.5% and left the asymmetric corridor around MPC retained at +200 basis point(BPS) & -500 basis points(BPS) while Liquidity ratio was kept at 30%.
These decisions was made at the first meeting held in Abuja on Tuesday, July 26, 2016 since the introduction of the new FX market in June, 2016.
The Central Bank of Nigeria (CBN) has earlier in March during the Monetary policy committee meeting raised its benchmark interest rate from 11 percent to 12 percent.
Godwin Emefiele, Governor of the CBN, said the MPC decided to raise interest rates in order to ease the inflationary pressures caused by excess liquidity in the banking system. Click to signup for FREE news updates, latest information and hottest gists everyday
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Ur talking of excess liquidity, when d average nigerian is complaining of lack of cash in his/her pocket. Emefiele, did u read economics at all, our inflation is not as a result of too much money chasing too few goods, but caused by nauseating CBN & govt. policies
ReplyDeleteApc! Werepe Changi! Na just to inflict maximum pain and hardship on ordinary Nigerians this people Sani! Increase in tariff in almost everything and also vAT. Now you have increased interest rate again when salaries are being owed, petrol price jumped geometrically and hunger and malnutrition is now engulfing many, yet tollgate is still coming! Do we have real economists in this government or is this just pure wickedness and sadism?
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