MPC Again Plays The "Do Nothing" Card


Tuesday, January 24, 2017 2.50 PM / Cordros Capital

At the end of its 254th meeting (first this year), the Central Bank of Nigeria's Monetary Policy Committee (MPC) – still faced with the challenges of a severely weakened macroeconomic landscape, accentuated by stagflation dilemma, declining economic and business activities, and deepening recessionary trend – voted unanimously to maintain status quo by retaining the:  


1.       Monetary Policy Rate (MPR) at 14.0%;

2.      Asymmetric corridor around the MPR at +200/-500bps;

3.      Cash Reserves Ratio (CRR) at 22.5%; and

4.      Liquidity Ratio (LR) at 30.0%.

The Committee again noted that the risk facing the domestic economy is in two folds (i.e. price and output) and reiterated its commitment to price stability while closely monitoring domestic and external developments that could shape subsequent decisions.
The Committee's decision came in line with consensus, as shown by a Bloomberg-compiled median estimate of 14.0% for the MPR.

There were 10 members in attendance.

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