The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its first monetary policy meeting of 2022 today, maintaining all key rates. Please see below, a summary of the committee’s decisions.
– Retain MPR at 11.50%
– Retain CRR at 27.50%
– Retain Liquidity ratio at 30%
– Maintain an asymmetric corridor at +100/–700 basis points around the MPR.
The MPC noted that the rise in the nation’s inflation rate in December 2021 to 15.63% y/y is attributable to increased demand during the yuletide season, and suggests that the upward movement in prices could be a temporary development.
The MPC also predicts sustained positive economic growth, supported by monetary and fiscal policies and stability in the price of crude oil. Headline inflation is also expected to continue to ease going into the new year, driven by the significant interventions in the agricultural sector.