Central Bank of Nigeria Monetary Policy Committee (MPC), has unanimously agreed to retain the Monetary Policy Rate (MPR) at 11.5%. Monetary policy rate is the rate at which CBN lends to banks which determines the direction of interest rate charged by banks. CBN Governor Godwin Emefiele said this while reading the communique at the end of the first MPC meeting in 2021. He also on behalf of the MPC advised the Federal Government against any further lockdown in the country due to the second wave of coronavirus pandemic.
The MPC position is coming after the Presidential Task Force on COVID-19 extended the eased lockdown in the country on Monday, January 25. Godwin Emefiele, CBN governor gave the advised while addressing newsmen after the first MPC meeting in 2021 in Abuja. Emefiele said the CBN would collaborate on policy implementation with the fiscal authorities to revamp the economy, adding that the bank has secured approval from President Muhammadu Buhari to restructure the Nigeria Commodity Exchange.
According to him, CBN can no longer sit back and watch unscrupulous commodity merchants hoard commodities and force the prices of commodities to be high. the CBN owns 60 percent of the Nigeria Commodity Exchange, which Emefiele said will take charge of running the exchange to international standard. The governor also the MPC unanimously agreed to retain the current monetary policy stance by leaving Monetary Policy Rate, MPR, at 11.5 percent and retain the Cash Reserves Ratio at 27.5 per cent. Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric corridor which was left at +100 and -700 basis points around the MPR.
