The monetary policy committee (MPC) of the CBN has once again retained all key policy parameters in the face of persistent inflationary pressures as expected by economic analysts at its just-concluded MPC meeting held in Abuja. Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN) revealed while reading out the committee’s communique on Tuesday, at the CBN Headquarters the committee’s decision to keep the monetary policy rate (MPR) at 11.5 per cent, Cash Reserve Ratio (CRR) at 27.50 per cent, the Liquidity Ratio (LR) at 30 per cent and the asymmetric corridor of +100/-700 basis points around the MPR.
The apex bank governor further revealed that the committee’s decision was to ensure the consolidation of all administrative measures not only to rein in on inflation but also boost investments, diversify the economy as it has continued to urge deposit money banks (DMBs) to put in place measures aimed at boosting lending and stimulating consumption.
As noted by economic experts, the CBN’s decision comes with a clearer insight into Nigeria’s post-recovery efforts. As a whole, the nation’s economic data has been somewhat mixed, as the recent output report by the NBS estimated the economy grew marginally by 0.51 year on year in the first three months of 2021, and solidifying Nigeria’s fragile exit from recession in the last quarter of 2020. Also, the net domestic credit has continued to expand in double-digit figures by 11.1 per cent in April 2021 and 20.4 per cent year on year in April 2020. On the converse, inflationary pressures have continued to persist, albeit slightly moderating to 18.12 per cent in April 2020.