The monetary policy committee of the Central Bank of Nigeria has increased the cash reserve ratio CRR by 500 basis points from 22.5% to 27.5%..
Aside the change in CRR, Other key rates which includes the interest rate pegged at 13.5% were left unchanged while The asymmetric corridor of +200/-500 basis points around the MPR was retained The Liquidity Ratio was also kept at 30%.
The Governor CBN Godwin Emefiele who made this known after the first monetary policy committee meeting in 2020 Said the move has become important to mop up liquidity and control inflation.
Also, the CBN Governor stated that the decision to keep other rates unchanged was informed by the conviction of the committee members that there is a need to observe the response of the economy to several policies introduced by the Central Bank.
The committee also called on the federal government to come up with innovative ways of solving challenges that increase inflation such as the farmers, herders clashes.