The Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso has said that despite pockets of macroeconomic headwinds confronting the Nigerian economy, the banking system has remained robust and resilient.
In a communique on the outcome of the just concluded Monetary Policy Committee (MPC), Cardoso revealed that the Committee decided to hold all parameters as follows:
- Retain the MPR (Monetary Policy Rate) at 27.50 per cent.
- Retain the asymmetric corridor around the MPR at +500/-100 basis points
- Retain the Cash Reserve Ratio of Deposit Money Banks at 50 per cent and Merchant Banks at 16 per cent.
- Retain the Liquidity Ratio at 30 per cent
Members of the MPC however, urged CBN not to relent on its keen surveillance of the banking system, especially at a time of significant exogenous and endogenous headwinds. In addition, Members called on the Management of the apex Bank to closely monitor the ongoing recapitalization of the banking system to ensure the injection of quality capital as envisaged in the framework.
The MPC acknowledged the various policies by CBN, aimed at anchoring inflation expectations, easing exchange rate pressures, deepening financial inclusion, and improving the transmission mechanism of monetary policy.