The Committee’s Decisions
The Committee considered and acknowledged the merits of option 1 but rejected it as being premature in view of the potential risk factors in the horizon posed by recent developments which would necessitate increased fiscal expenditure in the short-to-medium term, resulting in a resurgence of inflationary pressures.
The Committee considered and decided by a majority of 7 votes to hold and 3 votes to reduce the MPR by 50 basis points.
Thus, by a majority vote of 7 members to 3, the MPC voted to maintain the current policy stance i.e. retain the MPR at 12 per cent with a corridor of +/-200 basis points around the MPR; retain the Cash Reserve Requirement at 12 per cent and Liquidity Ratio at 30 per cent; with the Net Open Position at 1.0 per cent.
Source: CBN
