The Monetary Policy Committee (MPC) has cut its benchmark Monetary Policy Rate (MPR) by 50 basis points to 27%, maintaining its firm stance against inflationary pressures in the economy.
In line with this, the asymmetric corridor around the MPR was retained at +250 and -250 basis points, signalling the Committee’s continued preference for tight monetary conditions to anchor inflation expectations.
On prudential ratios, the Cash Reserve Ratio (CRR) remains at 45% for Commercial Banks and 16% for Merchant Banks, reflecting the Bank’s commitment to mopping up excess liquidity in the system. The Liquidity Ratio was also held steady at 30%, further tightening financial system conditions.
The Committee reiterated its resolve to strike a balance between price stability and financial system soundness, noting that while inflation has shown signs of moderation, maintaining policy consistency remains crucial for long-term stability.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
