Following the release of the Monetary Policy Committee decision , which was posted yesterday evening on this blog, i would like to recap some of the issues as pronounced by the Central Bank Governor, Mr Godwim Emefiele. The MPC reduced the Cash Reserve Ratio (CRR) to 25 percent, it retained the Monetary Policy Rate at 13 percent and liquidity ratio at 30 percent.
The meeting considered various significant variables such as the fundamentals driving the economy, declining growth, rising unemployment, the evolving international economic environment as well as the need to properly position the Nigerian economy on a steady path of growth. The naira had remained stable at the interbank market around N196.95 and N197/$1 over the past few weeks, while at the Bureau De Change (BDC) there was volatility between N224.50 and N211.50. The committee promised to continue its job towards the exchange rate stability.The general outlook for economic activity is to improve on account of a sustained improvement in power supply, progress being made towards distribution and plans to refine crude oil locally and the progress being made in the war against terrorism in the North East.
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