MPC Raises Monetary Policy Rate To 12%

MPCThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria has raised the Monetary Policy Rate (MPR) to 12% from 11%.

This is an outcome of its 2-day meeting which started on Monday in Abuja, the nation’s capital; the second for the year 2016.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20% and 30% respectively.

The Governor of the central bank said that the key decisions taking by the regulator were part of measures for achieving fiscal and financial stability.

Access Bank Releases Outlook On MPC Meeting

Access BankOne of Nigeria’s tier-one listed commercial lender, Access Bank has released its outlook on the two-day monetary policy meeting of the Central Bank.

The bank expects the committee to retain the headline interest rate at 11% and leave the lending corridor of plus 200 basis points and minus 700 basis points unchanged.

Analysts at Access Bank believe the financial regulator will continue to tolerate above 9% inflation target in a bid to keep monetary conditions relatively loose in support of the economy.

Access Bank sees the cash reserve ratio and liquidity ratio left unchanged and anticipates no change in the foreign exchange policy position of the Central Bank.

The 249th meeting of the Monetary Policy Committee kicks off on Monday in Abuja, the nation’s capital.

Economic and financial analysts believe the volatility of the Naira at the foreign exchange market and the double-digit inflation recorded in February would top the agenda at the two-day meeting.

At the last meeting in January, the MPC maintained the monetary policy rate, the cash reserve requirement, and the liquidity ratio at 11%, 20%, and 30% respectively.

The outcome of the meeting will be announced on Tuesday, March 22,2016.