THUR FEB 20 2025-theGBJournal| In line with expectations, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held the Monetary Policy Rate (MPR) steady and maintained all other policy parameters after assessing both global and domestic economic developments.
At the end of the 299th MPC meeting held on February 19th & 20th, the committee voted to hold the MPR at 27.5%, retain the asymmetric corridor at +500/-100 around the MPR.
The MPC also retained the CRR of Deposit Money banks at 50%, retained the CRR of Merchant Banks at 16% and held the liquidity ratio constant at 30.00%.
The MPC’s decision, as projected, was primarily influenced by near-term expectations of moderating inflation and the continued stability of the naira at the Nigerian Foreign Exchange Market (NFEM).
Besides, the MPC saw limited room for further interest rate hikes despite the existing negative real rate of return, considering the potential impact on borrowing costs for both corporations and the government.
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