The Monetary Policy Committee (MPC) of the Central Bank of Nigeria has been meeting for two days now and investors are anticipating the outcome of the meeting.

An Economist, Gabriel Idahosa, says that policies that were in place before the suspension of the CBN Governor, Lamido Sanusi would still be the same, adding that there would be no dramatic change after the decisions of the MPC.

Mr. Idahosa mentioned that the earlier speculations that there would be an increase of public sector deposit from 75% to 100% and private sector deposit from 12% to 15% will further reduce credit capacity of banks, adding that the banks can only give credit deposit from the deposit they hold, but the CBN will move the public deposit from 75% to 100% due to the pressure on the foreign exchange.

He said the MPC may need to look at the private sector before making any increase “because we don’t want to dry up all sources of credit to the economy, if you want the economy to grow you will have to provide some credit facilities to the economy” he added.

He further advised that the private sector deposit should form the bulk of credit resources for the bank