CBN keeps all rates unchanged

Just as financial experts predicted, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) which met on Monday the 20th and Tuesday, 21st of March, 2017 decided to retain the policy rates.
In attendance at the meeting were 10 members of the committee who assessed the global and domestic economic and financial environment for the first quarter of 2017 as well as the outlook for the medium-term.
Nine (9) out of the ten (10) members voted to retain all policy parameters at previous levels while one (1) member voted to raise the MPR.
The committee in line with the current happenings and realities facing the economy decided as follows:
1. Retain MPR at 14 percent;
2. Retain CRR at 22.50 per cent;
3. Retain the Liquidity ratio at 30.00 per cent;
4. Retain the Asymmetric window at +200 basis point and -500 basis points, around the MPR
The CBN Governor, Godwin Emefiele, while fielding questions from journalists at the end of the MPC meeting said the bank was determined to see the convergence of rates at the foreign exchange market.
The CBN governor denied that the bank was directed by the National Economic Council (NEC) to intervene in the FOREX market before it started injecting money into the interbank market.
“NEC did not direct the CBN as is being insinuated in some quarters.
“We have seen the trend and we took decision to revise it through our FOREX intervention,’’ Mr. Emefiele said.
He said the CBN was optimistic that the rate between the official and parallel market would converge further.
When asked if the CBN could sustain the policy, Mr. Emefiele said the bank had the capacity to take decisions and implement them.
He noted that the nations’ foreign reserves had improved further to $31 billion.
Since February when the CBN started its intervention at the interbank market, it had injected more than 1.5 billion dollars, and the Naira had extended its gains against the dollar.
To further sustain its intervention at the market, the apex bank injected another 180 million dollars on Monday to meet the needs of schools, medicals, business and personal travel allowances.
The Naira had continued to appreciate at the parallel market, exchanging at N420 (buying rate) and N430 (selling) while Pound Sterling and the Euro closed at N530 and N450 respectively on Tuesday.