CBN Reduces Monetary Policy Rate To 11.5%

 

The Central Bank of Nigeria has cut the Monetary Policy Rate from 12.5 per cent to 11.5 per cent.

Central Bank Governor Godwin Emefiele announced this on Tuesday while presenting a communiqué after the two-day Monetary Policy Committee Meeting in Abuja.

The MPC, however, opted to retain the Cash Reserve Ratio at 27.5 per cent and the liquidity ratio at 30 per cent.

“In the face of declining economic growth and rise in inflation, committee faced a difficult set of policy choices requiring trade-offs and sequencing,” he said.

According to Emefiele, reducing the MPR will put pressure on the deposit money banks to lower cost of credit and the cheaper credit will improve demand, stimulate production, reduce unemployment and support the recovery of output growth.

CBN Retains Interest Rate At 12.5%

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, speaks to the press about the Monetary Policy Committee meeting of June 20, 2020

 

The Monetary Policy Committee of the Central Bank of Nigeria has retained the monetary policy rate at 12.5 per cent.

Governor of the Central Bank, Mr Godwin Emefiele announced this at the end of the MPC’s meeting on Monday.

Emefiele explained that other parameters were held constant, leaving the CRR at 27.5% and the liquidity ratio at 30%.

He added that the move to tighten will contradict the initiative of expansion of affordable credit to the real sector while increasing MPR at the stage will be counter-intuitive and will result in upward pressure on market rates and cost of production and a further cut will not be realistic

The CBN Governor stated that the earlier loosening to 12.5% in May is yielding positive impact as credit growth increased significantly in the economy and more time needs to be given for the impact to be felt further.

According to him, the nation’s Gross Domestic Product (GDP) grew in the first quarter of 2020.

“Available data from the National Bureau of Statistics showed that real Growth Domestic Product (GDP) grew marginally by 1.87 per cent in the first quarter of 2020 compared with the 2.25 per cent and 2.10 per cent in the proceeding and corresponding quarters of 2019,” he said.

Although the CBN Governor noted that there was a decline in output growth, he, however, attributed the decline to the COVID-19 pandemic.

“The performance was largely driven by 5.06 per cent growth in the oil sector and 1.55 growths in the non-oil sector. The decline in output growth in the first quarter was largely attributed to the decline in the oil prices and the shock from the COVID-19 pandemic.

“The Committee observed the gradual but persistent decline in the manufacturing and non-Manufacturing Purchasing Indices below the benchmarks. 10 members of the committee were in attendance,” he said.

Eight members of the committee voted in favour of holding the MPR, while two members wanted it reduced.

In addition to the MPR, the Cash Reserve Ratio (CRR) was retained at 27.5 per cent, liquidity ratio at 30 per cent, while the Asymmetric Corridor was retained at +200/-500 basis points.

 

FAAC: Avoid Sharing All Proceeds From Federation Account, CBN Tells FG

 

The Federal Government has been asked to caution the rate at which all the proceeds from the Federal allocation are being shared across all tiers of government.

This is according to the Monetary Policy Committee (MPC) of the Central Bank of Nigeria who disclosed this on Friday at the apex bank’s headquarters in Abuja.

The committee headed by the governor of the apex bank, Godwin Emefiele, called on the fiscal authorities to ensure that they build cushions that will help reduce the rising public debt.

READ ALSO: CBN Retains MPR At 13.5 Percent, Raises CRR To 27.5

The MPC noted that the rate at which public debt was rising faster than both domestic and external revenue is a major concern that the fiscal authorities should strongly consider.

“The MPC, however, cautioned that public debt was rising faster than both domestic and external revenue, noting the need to tread cautiously in interpreting the debt to GDP ratio.

“The Committee also noted the rising burden of debt services and urged the Fiscal Authorities to strongly consider building buffers by not sharing all the proceeds from the Federation Account at the monthly FAAC meetings to avert a macroeconomic downturn, in the event of an oil price shock.”

The committee noted that the reliance on oil should gradually reduce and the Federal Government should ensure that the cost of governance is reduced.

“Government to gradually reduce reliance on oil receipts and focus on revenue diversification through reforms of the tax system.

“The Committee also called on Government to rationalize fiscal expenditure towards reducing the current excessively high cost of governance.”

In December 2019, a total of N716.298 billion was shared between the Federal Government, States, and Local Government Councils.

According to the Deputy Director, Press and Public Relations, Federation Accounts Allocation Committee (FAAC), Henshaw Ogubike, the total sum comprised revenue from Value Added Tax (VAT), Exchange Gain and the Statutory Revenue.

Ogubike stated that as of January 15, 2020, the balance in the Excess Crude Account (ECA) was $324.968 million.

MPC Retains MPR At 13.5%

CBN Governor, Godwin Emefiele.

 

The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 13.5%.

Governor of the Central Bank, Godwin Emefiele, made the announcement on Friday during the MPC meeting in Abuja.

This is the sixth month the apex bank has maintained the rate after it was dropped from 14% to 13.5% in March.

According to Emefiele, the decision was unanimously agreed upon by all committee members.

He said, “The committee has decided by a unanimous vote to maintain Monetary Policy Rate at 13.5% and to hold other policy parameters constant.

“In summary, the MPC voted to retain MPR at 13.5%, to retain asymmetric corridor at +200 and -500 basis points around the MPR, to retain CRR at 22.5% and to retain the liquidity Ratio at 30%”.

MPC Reduces Monetary Policy Rate For First Time In Over Two Years

 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points to 13.50 per cent from 14 per cent.

The CBN Governor, Mr Godwin Emefiele, disclosed this during a press conference at the end of a two-day MPC meeting held on Tuesday in Abuja.

READ ALSO: CBN Projects 12% Rise In Inflation

This is the first time the MPR will be reduced since July 2016.

The MPC, however, held all other key parameters remain unchanged; Cash Reserve Requirement (CRR) remained at 22.5 per cent, while the liquidity ratio was kept at 30 per cent.

Mr Emefiele explained that the cut in the rates was to support the nation’s feeble economic growth at this time.

He added that the decision was aimed at reducing the rate of unemployment and diversifying the country’s economy.

MPC Retains Monetary Policy Ratio At 14%

Nigeria's Foreign Exchange Inflow Hits $91b In 2017 – CBN

 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on has left the monetary policy rate unchanged at 14 per cent.

The CBN Governor, Mr Godwin Emefiele, who was speaking at the end of the two-day meeting of the committee in Abuja.

He said that the committee also retained the cash reserves ratio at 22.5 per cent.

He announced that the liquidity ratio was left at 30 per cent; and the asymmetric window kept at +200 and -500 basis points around the MPR.

According to Mr Emefiele, the economy was on the right path but some key sectors continued to experience significant challenges.

“The MPC, however, expressed concern about the tepid growth expectations and growing uncertainty in the global financial markets.

“These uncertainties are arising from the poor reception of the Brexit deal by British politicians, continuing trade war between the U.S. and her major trading partners, as well as the commencement of U.S. sanctions on Iran.”

He further stated that the committee believed that although the domestic economy was recovering modestly from the recession, the recovery was tepid and called for more efforts to strengthen the output and demand.

CBN Postpones MPC Meeting To Observe Public Holiday

Nigeria's Foreign Exchange Inflow Hits $91b In 2017 – CBN

 

Nigeria’s Central Bank Monetary Policy Committee (MPC) has shifted its last rate decision meeting for the year, in observance of the public holiday, slated to hold on Tuesday, November 20, 2018.

The two day-meeting which was earlier scheduled to hold on Monday and Tuesday will now hold on November 21- 22.

Economic analysts say they expect the MPC to keep the monetary policy rate unchanged at 14 per cent and maintain the status quo on other key parameters.

The MPC is the highest policy-making body of the Central Bank, with the mandate to review economic and financial conditions in the country’s economy.

 

CBN MPC Holds MPR At 14%

CBN Governor, Godwin Emefiele

 

The Central Bank of Nigeria’s Monetary Policy Committee has voted to retain the Monetary Policy Rate (MPR) at 14%.

Governor of the CBN, Godwin Emefiele, made the announcement on Tuesday during a press briefing in Abuja.

He also disclosed that the Cash Reserve Ratio is at 22.5 %, Liquidity Ratio at 30%, Asymmetric Corridor at +200 and -500 basis point.

CBN Holds 262nd MPC Meeting

 

The 262nd Monetary Policy Meeting is ongoing at the 11th Floor, Wing C of the Central Bank of Nigeria Headquarters in Abuja, the nation’s capital.

CBN Governor, Godwin Emefiele chairs the meeting that brings stakeholders to deliberate on the financial stability of Nigeria.

In attendance are key officials of the apex bank, stakeholders and journalists.

At the meeting, the apex bank decided to retain the MPR rate at current level of 14 per cent, Liquidity ratio at 30 per cent.

MPC Leaves Monetary Policy At 14%

 

The Monetary Policy Committee Central Bank of Nigeria (CBN) on Tuesday left the Monetary Policy Rate unchanged at 14%

The CBN Governor, Mr Godwin Emefiele, made this known after the two-day meeting which was held by the committee in Abuja.

Mr Emefiele noted that the committee agreed to maintain status quo on the current MPR.

He added that the committee also decided to maintain the Cash Reserves Ratio (CRR) at 22.5 percent and liquidity ratio of 30.0 percent.

Also retained is the Asymmetric Window which was left at +200 and -500 basis points around the MPR.

 

MPC Retains Monetary Policy Ratio At 14%

The Central Bank’s Monetary Policy Committee on Wednesday voted unanimously to maintain status quo on all monetary parameters, keeping the benchmark lending rate at 14 percent.

This follows the conclusion of the two-day meeting of the new committee which was also the first for 2018.

The CBN Governor Godwin Emefiele at the media briefing in Abuja, explains that the nine-member committee voted to hold rates in favour of economic growth.

He noted that there’s need for corrective measures in the fiscal distortions and the decision to retain rates at current levels relates to consumer pricing and Nigeria’s current account balance.

The governor also introduced the new members of the committee and explains their roles in the decision.

With the first and successful monetary rate-setting meeting held, the next line of expectation could be the 2018 budget passage as investors continue to price in the hope for the markets.