The Monetary Policy Committee (MPC) at its last meeting again retained the benchmark interest rate at 12%, but voted to increase cash reserve requirement on private sector deposits by 300 basis points to 15 per cent.
This is the 15th time the MPC is leaving the MPR at 12%.
The committee unanimously voted for the further tightening of monetary policy to consolidate recent gains, but members were divided on the instrument.
However, by a majority vote of 5 to 4, the committee took the decision to retain the rate at 125 and increase the Cash Reserve Ratio for private deposit to 15% from 12%.
The Chief Executive Officer, Economic Associates Dr Ayodele Teriba, who was a guest on Channels Television’s programme, Business Incorporated, does not seem to agree with those decisions, adding that he was not expecting further tightening of the monetary policy.
He maintains that stimulating the economy for growth should be the primary focus of the MPC.
