The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting has retained MPR at 12%, CRR at 22.5% and Liquidity Ratio at 30% while it embraces flexibility in the foreign exchange market.
The cash-reserve ratio was left unchanged at 22.5%, Central Bank of Nigeria Governor Godwin Emefiele told reporters immediately after the MPC meeting in Abuja.
The Nigeria’s Vice President, Prof. Yemi Osinbajo, said two weeks ago that the government believes “a more flexible” exchange rate policy is needed to stimulate the economy, it is not clear if the president shares that view.
Just last week, the Bureau of Statistics released its latest figures which put inflation at 13.7 per cent in April, a near six-year high.
Also, on Friday the economy contracted by 0.4 per cent year-on-year in the first quarter – far worse figures than expected, prompting analysts to change their outlook and predict the economy will contract over the year as a whole.