Tuesday, September 25, 2018
Advertisement

CBN retains monetary policy rates — in spite of quorum crisis

CBN retains monetary policy rates — in spite of quorum crisis
January 21
18:30 2018
Advertisement

The Central Bank of Nigeria (CBN) says it will retain all monetary policy rates after its monetary policy committee could not hold its first meeting in 2018.

The meeting, which was scheduled to hold on January 22 and 23, could not hold after the senate refused to approve members appointed to replace retired members of the committee.

The committee, which comprises of 12 members, is required by the CBN act to form a quorum before it meets to decide on interest rate.

In all, there are currently only five members available — whereas the quorum is six out of 12 members, as defined by the second schedule of the CBN Act.

WHAT DOES MPC DO?

  • The monetary policy committee (MPC) is the highest policy making committee of the CBN mandated to (1) review economic and financial conditions in the economy (2) determine appropriate stance of policy in the short to medium term (3) review regularly, the CBN monetary policy framework and adopt changes when necessary and (4) communicate monetary/financial policy decisions effectively to the public and ensure the credibility of the model of transmission mechanism of monetary policy.

In a statement signed by Godwin Emefiele, governor of the apex bank, and shared with TheCable, he said the rates will be maintained to sustain the recent economic growth experienced.

“The Central Bank of Nigeria wishes to inform the general public and relevant stakeholders that the first monetary policy committee (MPC) meeting for 2018, which was scheduled for 22-23 January 2018, will not hold due to the bank’s inability to form a quorum as stipulated in the Central Bank of Nigeria Act 2007,” hes said.

“Despite this development, we are pleased that key economic indicators continue to move in the right direction. With modest recovery in oil prices and boost in domestic production, we exited the recession in 2017, while inflation has continued its decline and is now at 15.37 percent for December 2017.

“The management of the CBN is determined to sustain these gains and will continue our vigilance and proactivity to ensure macroeconomic stability through 2018.

“Under these circumstances , and in the absence of a meeting of the MPC, the CBN shall continue to maintain key monetary policy variables as decided by the last MPC Meeting (November 2017) as follows:

“MPR at 14.0 percent; CRR at 22.5 percent; Liquidity Ratio at 30.0 percent; and the Asymmetric corridor at +200 and -500 basis points around the MPR.

“Please note that a revised schedule of Meetings for the MPC will be communicated as soon as the bank is able to meet the statutory requirements of membership and quorum.”

In July 2017, the senate had said it would not confirm appointments by the federal government if Ibrahim Magu is not replaced as acting chairman of the Economic and Financial Crimes Commission (EFCC).”

The CBN MPC committee first raised interest rate at 14 percent in 2016 to combat rising inflation.

RECEIVE ALERTS FROM THECABLE

BBM CHANNEL C0038F78B
WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2018 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Tags
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement

Exchange Rates

September 24, 2018USDGBPEUR
INTERBANK360.45480.18420.32
LAGOS360485425
KANO361483423
PH362482423
ABUJA362481423
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement