By Dayo Omoogun
The Monetary Policy Committee of the Central Bank has voted to cut the Monetary Policy Ratio (MPR) to 12.5% while retaining
all other ratios at their pre-meeting levels viz: Assymetric Corridor +200/-500 basis points around the MPR, CRR at 27.5% and Liquidity Ratio 30%.
This is contained in a communique it issued at the end of its meeting held on Thursday.
The decision to cut the MPR was unanimous though majority of the members (7 out of 10 ) carried the day by voting for a reduction rate of 100 basis points while the remaining suggested higher cut rates.
In reaching its decision, the Committee had considered the prevailing global as well as local economic realities occasioned by the COVID-19 pandemic, the CBN’s economic stimulus packages and the future outlook.
The Committee was optimistic that the nation’s economy may be able to avoid slipping into recession if all the stimulus packages are properly implemented believing that the economy will be on the upswing by the fourth quarter after the sluggishness or negative trajectory which will likely characterise the second and third quarters respectively.