MPC Votes To Retain MPR At 14% | Independent Newspapers Limited
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MPC Votes To Retain MPR At 14%

Sokoto, CBN; Collateral
Posted: Sep 20, 2016 at 3:14 pm   /   by   /   comments (0)

As predicted by experts at Access Bank Plc’s Economic Intelligence Unit on Monday, committee members of the Central Bank of Nigeria’s Monetary Policy Committee ended its 109th unanimously voted to retain policy rates at their current levels.

Access Bank had expressed hope that the MPC meeting would vote to retain the benchmark Monetary Policy Rate at 14 per cent, besides “leaving the asymmetric corridor of +200 basis points and -500 basis unchanged,” especially at a time when “the CBN has sent strong signals to the market that it will prioritize stemming inflation over promoting growth, as well as supporting the return of foreign capital. Thus, despite worries over the poor Q2 GDP outturn we see the MPC holding rates in a bid to signal consistency.

“We expect the Committee will once again reiterate the need for fiscal stimuli to reflate the economy,” by retaining the Cash Reserve Requirement (CRR) at 22.5 per cent; Liquidity Ratio at 30 per cent.

Details of the MPC decisions later.