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Policy uncertainty hurting Nigerian economy- MPC

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Only 57.4m of Nigeria's 200m people have BVN – CBN

…retains benchmark interest at 13.5%

By FELIX OLOYEDE

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has expressed worry that persistence of policy uncertainties, financial vulnerabilities and rising geo-political tensions hampering Nigeria’s economic growth.

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Briefing the press at the end of its two-day meeting in Abuja on Friday, the Chairman of the MPC and CBN Governor, Godwin Emefiele explained that the delay in implementation of the 2019 budget contributed to the slow economic growth the country had in the second quarter of 2019.

“It (Committee) however, observed that this was an improvement over the corresponding quarter of 2018. In addition, it noted the broad slowdown across key economies and the response of major central banks to revise their policy rates downwards,” he said.

Meanwhile, the MPC retained the Monetary Policy Rate (MPR) at 13.5 per cent, the asymmetric corridor of +200/-500 basis points around the MPR; Cash Reserve Ratio (CRR) at 22.5 per cent; and Liquidity Ratio at 30 per cent.

The MPC chairman noted that the committee decided to hold rates because it “offers pathways to appraising the effects of the suit of heterodox monetary policy to encourage credit delivery to the real sector, especially in the light of the subsisting implementation of the Loan-to-Deposit Ratio policy.”

The committee urged government at all levels to device ways of tackling the country’s rising unemployment, which has given rise to insecurity.

 

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