Monetary Policy Committee increases cash ratio to 27.5%

By Mustapha Sumaila

The Monetary Policy Committee (MPC), a mandate of the Central Bank of Nigeria (CBN) has increased Cash Reserve Ratio (CRR) from 22.5 per cent to 27.5 per cent.

The Governor of CBN, Mr  Godwin Emefiele made this known while briefing newsmen on the outcome of MPC meeting in Abuja on Friday.

Emefiele disclosed that all 11 members of the committee attended the meeting while nine of them voted for the increase of CRR.

He explained that the committee was confident that increasing the CRR this time would help to address monetary induced inflation.

He said it would assist in retaining the benefits from banks’ loan to deposit ratio which he said had been sustained for increased credit to private sector as well as pursuing market interest rates downward.

According to him, the MPC retained other parameters apart from the CRR.

He said the Monetary Policy Rate (MPR) was retained at 13.5 per cent and Liquidity Ratio at 30 per cent.

The governor stated that the committee also retained the Asymmetric Corridors at +200 and -500 basis points around the MPR. (NAN)