The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate, MPR at 27.50 per cent.
All twelve members of the Committee at the end of its two-day meeting also unanimously agreed to also keep all other parameters unchanged.
The MPC, at its 299th meeting retained the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent and also retained the Liquidity Ratio at 30.00 per cent.
The Committee in a communique said that stability in the foreign exchange market, resultant appreciation of the exchange rate and the gradual moderation in the price of Premium Motor Spirit (PMS) were some of the recent macroeconomic developments that are expected to positively impact price dynamics in the near to medium term.
It also stated that they were not oblivious of the risk of persisting inflationary pressures driven largely by food prices.
It therefore assured Nigerians that the Federal Government was still committed to improving security in food producing communities as well as employing diverse measures to enhance food supply which will in turn, help to moderate food prices.
On the banking sector, the MPC observed that despite pockets of macroeconomic headwinds confronting the Nigerian economy, the banking system has remained robust and resilient.
It however urged the Banking industry not to relent on its keen surveillance of the banking system, especially at a time of significant exogenous and endogenous headwinds.
Olusola Akintonde
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