The Central bank of Nigeria has voted that monetary policy rate, which measures interest rate to retain its status quo at 13.5 % for the first quarter of the year
Naija News reports that the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele who disclosed this decision today during a press conference at the end of a two-day MPC meeting revealed that the committee unanimously also voted to raise the Cash Reserve Ratio by 500 basis points from 22.5% to 27.5%.
speaking on why the monetary policy committee (MPC) raised the Cash Reserve Ratio by 500 basis points to 27.5% for the first quarter of the year Emefiele said that the decision of the MPC to raise the CRR is informed by recent inflationary pressure in the economy.
Also, the CBN Governor stated that hold all rates was informed by the conviction of the committee members that there is a need to observe the response of the economy to several policies introduced by the Central Bank. He also predicted that the global outlook to grow by 3.3 percent while the Real GDP Grows by 6.94 percent.
Governor, CBN, Godwin Emefiele, disclosed this while reading the communique at the end of the first MPC meeting in the year 2020 on Friday in Abuja. Meanwhile, other parameters such as Monetary Policy Rate (MPR), Liquidity ratio, and asymmetric corridor remain unchanged.