The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its last meeting of the year on the 21st and 22nd of November, 2016. The committee reviewed recent domestic, international and financial developments, including challenges facing the Nigerian economy in the near to medium term.
At the conclusion of the meeting, the 10 members in attendance unanimously voted to:
Retain the monetary policy rate (MPR) at 14.0%
Retain Cash reserve ratio at 22.5%
Retain the liquidity ratio at 30.0% with an asymmetric corridor of +200bps and -500bps.
Inflation Trend: The CBN Governor emphasized the fact that the month-on-month and core inflation figures had been rising at a decreasing rate from May 2016 to September 2016 with the rise in October bucking the trend. Inflation is still being driven by cost-push factors including FX scarcity and high energy, power generation and production inputs costs.
reporting for easykobo.com on Tuesday, Nov 22 2016 from Lagos, Nigeria
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