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CBN’s MPC raises MPR to 12%



CBN’s MPC raises MPR to 12%

At the end of its two-day meeting, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) from 11%to 12%.

The meeting which was the second for the year, started in Abuja Monday.

At its first meeting of the year held in January, the MPC maintained the MPR at 11%, cash reserve at 20%, and the liquidity ratio at 30%.

In making these disclosures Tuesday, the CBN governor said that the bank also raised the cash reserve ratio (CRR) for commercial banks to 22.5 percent from 20 percent and it held the liquidity ratio at 30 percent.

He also told reporters after a meeting of its monetary policy committee that the central bank would keep the naira foreign exchange rate stable despite a sharp fall of the currency on the parallel market due to shortages of dollars.

“The MPC voted to raise MPR by 100 basis points from 11 percent to 12 percent, raise the CRR by 250 basis points from 20 percent to 22.5 percent, retain liquidity ratio at 30 percent,” said Emefiele.

He cited the state of the economy and rising inflation, which is above the central bank’s target band of 6 to 9 percent.


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