The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained MPR at 14 per cent and all other parameters at their current levels for the next one year.
The CBN Governor, Mr Godwin Emefiele who announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja explained that the members of the committee agreed to maintain the current monetary policy stance.
Emefiele disclosed that, the Committee expressed satisfaction with the gradual but consistent decline in inflationary pressures in the domestic economy, noting its substantial base effect, continuous improvements in the naira exchange rate across all segments of the foreign exchange market, and considerable signs of improved investments inflows.
According to him, “The Committee welcomed the move by the fiscal authorities to engage the services of asset-tracing experts to investigate the tax payment status of 150 firms and individuals in an effort to close some of the loopholes in tax collection, towards improving government revenue”.
He noted that the committee however, expressed concern about the slow implementation of the 2017 Budget and called on the relevant authorities to ensure timely implementation, especially, of the capital portion in order to realize the objectives of the Economic Recovery and Growth Plan.
Emefiele while speaking on the insecurity in the Niger Delta, in the north-east and across regions where pockets of herdsmen activities remain violent. He said the MPC viewed the slow implementation of the 2017 budget as a challenge, calling on the fiscal authorities to speed up the process in line with the economic recovery and growth plan (ERGP).
The CBN has also been intervening in the Forex market, with a view to achieving foreign exchange stability, grow the economy, especially through enhancement of businesses across the country.
Also retained are the Liquidity Ratio which was left at 30 percent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.
The apex body has been meeting since Monday, to deliberate on monetary and other economic issues, part of which included its ongoing effort to regenerate the economy, reduce the rate of inflation, which once notched up to 18 per cent, before its current fall to about 16 per cent, according to the figure released by the National Bureau of Statistics, NBS.
The committee had in attendance, 8 out of 12 members of the Committee.