CBN MPC Retains Rates At 11.5%

 

The Central Bank of Nigeria (CBN’s) Monetary Policy Committee has maintained its key lending rate at 11.5 per cent.

At the end of its two-day meeting on Tuesday in Abuja, the CBN Governor, Godwin Emefiele, mentioned that the committee members unanimously voted to retain the monetary policy rate at 11.5%, whilst keeping all other monetary parameters constant.

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This will be the 6th consecutive time this year that the rates remained unchanged.

The MPC also pointed out that its policy within the last few months is showing results, as reflected in the 4.03% growth in real GDP and the 7th consecutive monthly decline in Nigeria’s headline inflation.

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.

 

CBN Retains MPR At 13.5 Per Cent

The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 13.5 per cent.

CBN Governor, Godwin Emefiele, announced the decision of the Monetary Policy Committee (MPC) after the two-day meeting which held at the apex bank’s headquarters in Abuja.

According to Emefiele, all members of the committee had agreed to retain the current monetary policy stance.

“An increase in the MPR will be taken by the deposit in the money banks as an invitation to increase lending rates and this will be most undesirable at this point in time when efforts are being made to avert a recession.

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“Besides, a reduction in the MPR will not make the Deposit Money Banks (DMBs) reduce lending rates but other strategies of the CBN are making the DMBs to reduce the lending rates in furtherance of growth objectives,” he stated.

“In view of the foregoing, the Committee by unanimous vote to retain monetary policy rate at 13.5 per cent and to hold all other parameters constant,” he stated.

Emefiele explained that the committee held the Cash Reserves Ratio at 27.5 per cent, while the Liquidity Ratio was left unchanged at 30 per cent.

Again MPC Retains Policy Rate At 13.5 Percent

 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the benchmark rate at 13.5%.

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, disclosed this decision during a press conference at the end of a two-day MPC meeting held on Tuesday at the apex bank’s headquarters in Abuja.

He explained that the committee unanimously voted to retain the MPR, after the rates were reduced from 14 percent to 13.5 percent in March 2019, the first time the MPR was reduced since July 2016.

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Mr Emefiele said that the committee reviewed the upside and downside options to either tighten, hold or loosen and decided to hold policies at its current position.

“The MPC reviewed the upside and the downsides of the options to tighten, hold or to loosen.

“The committee felt that there would be more gains in the shortfall to medium term in holding policy at its current position. The committee decided by unanimous votes to retain the policy rate at 13.5 percent and to hold all other policy parameters constant.

“The MPC voted to retain MPR at 13.5%, retain the asymmetric corridor at +200 and -500 basis point around the MPR, retain the CRR at 22.5% and retain the liquidity ratio at 30 percent.”

He added that the committee suggested that the Federal Government should reconsider its 2020 budget oil price benchmark of $57 per barrel, due to the possibility that prices will remain relatively weak in the nearest future.

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.

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.

Monetary Policy Committee Leaves Rates Unchanged

MPC, Central Bank, monetary policy, exchange rateThe Central Bank of Nigeria has decided to introduce a flexible exchange rate policy as it continues to monitor developments in the economy.

This announcement was made on Tuesday by the CBN Governor, Godwin Emefiele at the end of the two day rate setting meeting by the Monetary Policy Committee in Abuja, the nation’s capital which has been described as the most anticipated meeting.

According to Mr Emefiele, the Monetary Policy Rate will maintain status quo at 12%, Cash Reserve Requirement at 22.5%, Liquidity Ratio at 30% and maintain asymmetric corridor of +200/–500 basis points around the midpoint of the MPR.

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.

MPC Meeting Begins Next Week

MPC meetingThe Monetary Policy Committee of the Central Bank of Nigeria will hold its second meeting for the year next week.

At the two-day meeting, market watchers expect the increase in the February inflation rate and the issues surrounding the foreign exchange market to top the agenda.

They are also of the opinion that an increase in key rates and adjustment in the exchange rate may reduce speculative demand for foreign exchange.

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 MPC meeting will be announced on Tuesday, March 22, 2016.

Ogun State MAN Urges CBN To Reduce Interest Rates On Loans

Treasury bills-nigeriaMembers of the Manufacturers Association of Nigeria, (MAN) in Ogun State, South West Nigeria have appealed to the Central Bank of Nigeria (CBN) to urgently compel banks across the country to reduce the 25% interest on loans and overdrafts.

The association made the call in Abeokuta, the Ogun State capital during the 6th quarterly meeting of the body with the state government where issues affecting business operatives in the state are addressed to improve the business environment in the state.

This was in the wake of the downward review of the Monetary Policy Rate (MPR) from 13% to 11%.

Addressing the gathering, the State Commissioner  for Commerce and Industry, Mr Bimbo Ashiru, appealed to members of the association to support the ongoing effort by states and federal government towards translating the country from importing to exporting dependent economy to stimulate economic recovery and development.

They also asked the state government to urgently address the challenges of basic  infrastructure and security.