CBN concludes MPC meeting, raises monetary rate to 12%

The Central Bank of Nigeria, CBN, on Tuesday ended its Monetary Policy Committee, MPC, meeting where it raised its Monetary Policy Rate, MPR, to 12 percent from 11 percent as a response to the increase in inflation that was recorded last month.

Still in a bid to tighten money supply, the apex bank increased the portion of customers’ deposits that banks must keep as cash, known as the Cash Reserve Ratio, CRR, to 22.5 percent from 20 percent, while it retained the Liquidity Ratio, LR, at 30 percent.

Governor of CBN, Mr. Godwin Emefiele, who announced these decisions at the end of the meeting which started on Monday, explained that the bank’s resolve to tighten money supply was because the balance of risk was against inflation.

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