By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Friday, January 24, announced a rise in the basis points of the Cash Reserve Ratio by 500 basis points from 22.5 percent to 27.5 percent.
The apex bank, at the end of its first Monetary Policy Committee (MPC) meeting on Friday in Abuja, however, disclosed that it was keeping other parameters constant, with the Monetary Policy Rate (MPR) at 13.5 percent. The CBN also left the Liquidity Ratio (LR) steady at 30 percent and the Assymetric Corridor around the MPR at +200/-500 basis points.
Governor of the CBN, Mr Godwin Emefiele, while addressing newsmen on outcome of the earlier postponed two-day meeting of the MPC, which started on Thursday, expressed concerns about the nation’s inflation which reached 11.98 percent in December, saying that inflation above the 12 percent will be inimical to output growth.
Mr Emefiele also expressed the MPC concerns on rising debt in the country and called on the government to rather raise revenues and depend less on oil earnings.
Business Post reports that Cash Reserve Ratio is the is the minimum amount of customers’ deposits commercial banks are required to keep with the central bank. Before the increase by the MPC yesterday, banks were required to put in care of the CBN 22.5 percent of the customers’ total deposits.
more recommended stories
BREAKING: CBN Slices MPR to 11.5% from 12.5%
By Dipo Olowookere The Central Bank.
Visa, She Leads Africa to Assist 700,000 Women Entrepreneurs
By Adedapo Adesanya Leading payments solution.
Investors Gear up for DMO’s N150bn Bond Sale on Wednesday
By Modupe Gbadeyanka On Wednesday, September.
CSCS Warns Financial Market Participants of Alarming Rise in Cybercrime
By Modupe Gbadeyanka Stakeholders in the.
Retiree Life Annuity Funds Grows 15.3% to N463.1bn in Q2
By Adedapo Adesanya The National Insurance.
Investor Participation Central to Growth of Any Economy—Onyema
By Modupe Gbadeyanka The need to.
NASD OTC Market Opens Week 1.23% Higher on CSCS Gains
By Adedapo Adesanya The week kicked.
Lagos, PH BDC Operators Trade Dollar at N464.50
By Adedapo Adesanya Bureaux De Change.