The Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has spoken about the outcome of the Monetary Policy Committee (MPC).
Disclosing the committee’s decision, Emefiele said: “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 per cent.
“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”
Rewane commended the CBN, saying the central bank has taken the right decision because If the rate was lower, it will fuel increase activities and higher demand in the forex market and if it was increased rate, the growth which already just began to recover could have contained.
He said that it is time to wait for the two next month and see if the policy could be sustained and the recovery to the large extent fragile could actually be sustained.
According to him, this is the right decision in the sense that If you lower the rate, you will fuel increased activities and higher demand in the forex market if you increase it, you could constraint growth which already just began to recover.
“So, it is time to wait for the next month and see if the policy could be sustained and the recovery to the large extent fragile could actually be sustained.
Also, speaking on the inflation rate, he said: ” The drop in rate which came from about 18.3 to 17.1%. The actual change in the inflation rate was not that significant, it moderated and was consistent with the rest of the world.
“In fact, the output growth itself was even lower when you compare to the money supply growth because once it is growing to 17%.”