By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) on Tuesday retained Monetary Policy Rate (MPR) at 12 percent, Cash Reserve Ratio (CRR) at 22.5 percent and Liquidity ratio at 30 percent, while embracing a flexible foreign exchange market, according to Godwin Emefiele, governor of the CBN.
Also, the CBN would retain a small window for funding small transactions details which would be made available by the apex bank.
A Cordros report say the MPC noted that the action taken at the just concluded meeting is predicated on a less optimistic outlook for the economy, given that initial monetary injections from the budget may not immediately impact on the economy.
Yemi Osinbajo, last two (2) weeks had said that the government believes “a more flexible” exchange rate policy which is needed to stimulate the economy.
Also, last week, the National Bureau of Statistics (NBS) released its latest reports which put inflation at 13.7 percent in April, a near six-year high.
This is coming on the heels of reports by The Will that the CBN will today announce the devaluation of the naira to N250 – $1, quoting authoritative sources familiar the development.
