THUR, MAY 28 2020-theG&BJournal- The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) Thursday elected to cut the Monetary Policy Rate (MPR) by 100bps to 12.5% from 13.5%.
All the other parameters were retained. The Asymmetric corridor around the MPR at +200/-500bps is retained so also is the Cash Reserves Ratio (CRR) at 27.5%; and Liquidity Ratio (LR) at 30.0%.
The MPC was faced with the choice of reducing or leaving policy parameters unchanged but elected unanimously to reduce the benchmark interest rate.
Seven of the Committee members voted to cut rate by 100bps, two members voted for a 150bps rate cut, while one member elected for a 200bps rate cut.
The Committee considered developments in the global and domestic economy since its last meeting including the negative impact of COVID-19 on global growth and cautious global central banks’ responses to the COVID-19
On the domestic front, the Committee noted the sustained inflationary pressure which ticked up to 12.34% YoY on April and the sustained decline in manufacturing PMI.
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