By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)- The Nigeria’s Central Bank Tuesday retained the Monetary Policy Rate (MPR) at 12 percent (12%) consecutively for the fourteenth time following its Monetary Policy Committee (MPC) held January 20-21 2013 in Abuja Nigeria.

However, the public sector cash reserve requirement (CRR) was tightened to 75 percent (75%) from the previous 50%, while CRR on private sector deposit was retained at 12% in the review period.

The MPC retained the lending corridor at about 200 basis point, its benchmark rate, according to Sanusi Lamido, Governor of Nigeria’s Central Bank; inflation was stable but expressed the concern of the MPC about a decrease in Nigeria’s crude oil savings and inflows from portfolio investors.

Analysts at Investment One Financial Services affirmed that with the resolve of the MPC to hold the benchmark policy rate at 12% and increase the CRR on public sector deposit to 75% from 50% and private sector deposit still at 12%, would impact interbank rates upward in the interim and yields.

 Also Sanusi Lamido cited the huge disparity between parallel market and interbank FX rates as a rational for the CRR increase.