The Central Bank of Nigeria (CBN) has said that the monetary policy rate (MPR) will remain unchanged at six per cent with the asymmetric corridor of interest rates remaining at 200 basis points above the MPR and 400 basis points below the MPR.
Nigeria CommunicationsWeek gathered that the move will help maintain Nigeria’s external reserves to safeguard the international value of the legal currency while maintaining monetary stability and a sound and efficient financial system in Nigeria.
Rising from the 212th monetary policy committee meeting last week, the apex bank underscored the need for strengthening on-going reform efforts in the banking sector aimed at engendering desirable medium term economic growth path consistent with price and financial stability.
It further underlined the need to fast-track the proposed reforms in some key sectors of the Nigerian economy, and in particular, the power sector, to attract the much-needed private sector/foreign investment.
Sanusi Lamido Sanusi, governor of the CBN said that what the committee noted, was necessary because of the benefits in terms of the growth-enhancing and employment-creating potentials that these reforms and opening-up of the sectors would have on the rest of the economy.
He said the apex bank will also extend the guarantee on all interbank transactions up till December 31, this year. However, the CBN has the discretion to terminate the guarantee on a case-by-case basis as part of the ongoing reform process.