In its fourth meeting of the year which took place between July 25th-July 26th, the Monetary Policy committee (MPC) of the Central Bank of Nigeria increased the Monetary Policy Rate (MPR) by 200 basis points to 14%, and maintained the corridor around the rates at +2%/-5%. Against the backdrop of a weak macro-economy, indeed this was not a decision to be taken lightly and it reflected in the voting pattern of members in attendance. The decision to raise rates was largely divided among the members of the committee in attendance as five (5) of the eight ( members in attendance voted for the increase, while others preferred to hold rates. The harmonized Cash Reserve Ratio (CRR) was however retained at 22.5%.
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