The Central Bank of Nigeria’s Monetary Policy Committee has kept the Monetary Policy Rate at 11.5 per cent.
Godwin Emefiele, the governor of the Central Bank of Nigeria, said this after the committee’s two-day meeting in Abuja on Thursday. The Cash Reserve Ratio and Liquidity Ratio were likewise kept at 27.5 per cent and 30 per cent, respectively.
“The MPC decided to hold all parameters constant,” Emefiele said, announcing the committee’s decision. By a unanimous vote, the committee decided to keep the Monetary Policy Rate at 11.5 per cent.
“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent, and retain the Liquidity Ratio at 30 per cent”.
MPC assessed the impact of tightening or loosening, he said, taking into account the impact on output growth and employment, among other things.
Members believed that tightening would lessen demand pressure on the FX market by contracting the existing level of system liquidity, he said.
Recall that, The Central Bank of Nigeria (CBN) has announced that the Nigerian International Financial Centre (NIFC) will be established soon to act as a gateway for funds and investments into the country.
According to the CBN, the centre will be driven by technology and payment system infrastructure. Governor Godwin Emefiele made the announcement on Tuesday morning at the Chartered Institute of Bankers of Nigeria 14th annual banking and finance conference in Abuja.
“Central Bank, will, in the next 12 months be establishing The Nigerian International Financial Centre (NIFC). The NIFC will act as an international gateway for Capital and investments, driven by technology and payment system infrastructure,” the CBN governor said.
He claims that the new financial centre will bring together local and foreign banks to create global champions.
Emefiele revealed that the NIFC would be a 24-hour financial centre that will complement London, New York, and Singapore financial hubs, allowing Nigerian efforts like Infracorp plc, an N15 trillion infrastructure fund that will be formed in October 2021, to accelerate.