CBN raises cash reserve ratio to 27.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to raise Cash Reserve Ratio (CRR) from 22.5 per cent to 27.5 per cent.

CBN Governor, Mr. Godwin Emefiele told journalists at the end of the MPC meeting in Abuja on Friday that nine members out the eleven that attended the meeting voted in favour of the raise.

Emefiele expressed confidence that increasing the CRR this time would help to address monetary induced inflation.

According to him, it would assist in retaining the benefits from banks’ loan to deposit ratio which he said had been sustained for increased credit to private sector as well as pursuing market interest rates downward.

The MPC retained other parameters apart from the CRR.

He said the Monetary Policy Rate (MPR) was retained at 13.5 per cent and Liquidity Ratio at 30 per cent.

The governor stated that the committee also retained the Asymmetric Corridors at +200 and -500 basis points around the MPR.