As projected by some economic and financial experts, the Central Bank of Nigeria (CBN) sustained its hawkish monetary policy measures on Tuesday, raising the Monetary Policy Rate (MPR), the benchmark lending rate, by 25bps to 27.50%.
The Monetary Policy Committee (MPC) of the apex bank at the end of its two-day meeting in Abuja, however, retained the asymmetric corridor at +500/-100 basis points around the MPR; the Cash Reserve Ratio (CRR) of Deposit Money banks at 50.00% and 16.00% for Merchant Banks; and the Liquidity Ratio at 30.00%.
The CBN Governor, Mr. Olayemi Cardoso, who gave these figures at the end of the MPC’s meeting,
It would be recalled that at its last meeting held in September, the CBN raised the MPR by 50 basis points from 26. 75% to 27.25%, while retaining the asymmetric corridor of +500/-100 basis points.
Cardoso, while briefing journalists on the key decisions taken at the meeting then, confirmed that 11 out of the 12 members at the MPC meeting voted for the upward review of the benchmark lending rate.
As expected, most small business owners who spoke on the apex bank’s hawkish policy measure described the hiking of the hiking of the MPR as unfortunate, and capable of further compounding the challenges being faced by them with the attendant negative implications for closing of businesses and loss of jobs.
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