onlinenewsngr
  • Home
  • News
  • Entertainment
  • Economy
  • Health
  • Education
  • Politics
FREE SUBSCRIPTION
No Result
View All Result
  • Home
  • News
  • Entertainment
  • Economy
  • Health
  • Education
  • Politics
No Result
View All Result
onlinenewsngr
No Result
View All Result

No surprise as MPC retains policy rates, balancing effects between rising inflation and tepid growth

November 27, 2019
in Economy

In line with our expectation, the Monetary Policy Committee (MPC) of the CBN maintained status quo on all policy rates at the meeting which ended the 26th November 2019. It was a unanimous vote that kept the Monetary Policy Rate (MPR) at 13.5%, the asymmetric corridor around the MPR at +200bps/-500bps, Cash Reserve Ratio (CRR) at 22.5% and liquidity ratio at 30%.

No surprise as MPC retains policy rates, balancing effects between rising inflation and tepid growth

In its post-MPC briefing, the CBN noted that the choice of the committee remained limited. Hiking rates, in recognition of increased upside risk to inflation and mounting external sector pressures would further constraint economic growth; while a rate cut is likely to intensify risks to NGN stability resulting in increased capital outflows.

Pressure points highlighted, the MPC opted to retain policy rates, reflecting its desire to sustain the fragile economic recovery through private credit expansion. Private credit growth improved slightly to 13.08%yoy in October from 12.49%yoy in September, while credit to government declined in October to 85.99%yoy from 114.79%yoy in the previous month.
strong pro-growth bias in line with the recent CBN policies to lower interest rates and bolster non-bank domestic liquidity. Through its recent decisions, the CBN clearly revealed its willingness to support the economic recovery by reducing the arbitrage opportunities available to corporate borrowers and shrinking the size of its balance sheet without impacting foreign investors.

Although GDP growth surprised positively in Q3 2019 at 2.28%yoy from 2.12%yoy in Q2, supported by higher oil production and recovery in agriculture, momentum remains fragile and the medium-term outlook is still constrained by persistently weak macroeconomic policy environment and we see little room for the economy to expand above 2.5% in the short-term.


Tags: Cash Reserve RatioCBNMonetary Policy RateNGN

Related Posts

SON seizes 40ft container of substandard gas cylinders

SON, MAN partner against sub-standard products

December 3, 2020
Buhari/NNPC: What Is It With Niger Republic?

Buhari/NNPC: What Is It With Niger Republic?

December 3, 2020

FEC approves N117bn for reconstruction of roads and other projects

December 2, 2020

FEC approves N487m to procure banking application software for Federal Mortgage Bank

December 2, 2020

The Transformation of NPA – Hadiza Bala Usman’s Giant Strides

December 1, 2020

FCT to create special zone to curb indiscriminate cattle grazing

November 27, 2020

Discussion about this post

Latest

Serial rapist sentenced to 1,088 years for defiling 56 victims

Mr P, Rudeboy should hug it out after Chelsea win, says Ebuka

Actress Nkechi Blessing vows to beat up colleagues who secretly go for surgeries yet use slimming tea as disguise

Marriage shouldn’t cross your mind if you’re struggling — Nigerian Man writes

Police, pro-Biafra group disagree over arrest of 57 agitators

Buhari to inaugurate Lagos-Ibadan standard gauge June 10

Prev Next

© 2019 onlinenewsngr

Navigate Site

  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Advert Rates
  • Terms

Follow Us

No Result
View All Result
  • Advert Rates
  • Free Subscription
  • Home
  • News
  • Entertainment
  • Politics
  • Economy
  • Education
  • Health

© 2019 onlinenewsngr