Godwin Emefiele, CBN governor

Adebayo Obajemu

The Central Bank of Nigeria in a circular on its official website has announced that the 280th meeting of the Monetary Policy Committee (MPC) is scheduled to hold on Monday, July 26 and Tuesday, July 27, 2021.

The Apex bank in the last meeting retained the MPR at 11.5% and other parameters were also retained. Liquidity ratio was retained at 30 percent and cash reserve ratio (CRR) at 27.5 percent.

Emefiele explained that increasing the MPR will increase the cost of borrowing and reduce access to credit for businesses which he said might reverse the growth trend of the economy.

The committee had earlier in September 2020 agreed to reduce the benchmark interest rate to 11.5 percent from 12.5 percent.

The outcome of the scheduled MPC meeting next week would greatly determine the direction of our economy.

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