" ITREALMS: MPC retains liquidity at 30% - ITREALMS

Wednesday, February 28, 2024

MPC retains liquidity at 30% - ITREALMS

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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Liquidity Ratio at 30 per cent., reports ITREALMS.
MPC retains liquidity at 30% - ITREALMS
MPC in its February monthly meeting took this decision alongside three other items.

The Monetary Policy Committee is the highest policy making committee of the Central Bank of Nigeria |(CBN) with the mandate to review economic and financial conditions in the economy; Determine appropriate stance of policy in the short to medium term; Review regularly, the CBN monetary policy framework and adopt changes when necessary.

These, ITREALMS gathered in the communique available at the end of the meeting of tattended by the all 12 members committee, that Monetary has been increased by 400 basis poins to 22.75 per cent from 218.75 per cent.

Additionally, the Committee adjusted the asymmetric corridor around the MPR to +100/-700 from +100/-300 basis points.

Further, MPC raised the cash reserve ratio from 32.5 per cent to 45.0 per cent.

The Committee’s decisions, ITREALMS gathered were centered on the current inflationary and exchange rate pressures, projected inflation, and rising inflation expectations.

“Members were concerned about the persistent rise in the level of inflation and 
emphasized the Committee’s commitment to reverse the trend as the balance of risk leaned towards rising inflation,” part of the communique No. 150 stated.

ITREALMS equally gathered that the Committee, however, acknowledged the trade-off between the pursuit of output growth and taming inflation, but was convinced that an enduring output expansion is possible only in an environment of low and stable inflation.

Remmy Nweke/DoP

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