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Monetary Policy Decisions
203rd MPC Meeting of 2nd June, 2008
The Monetary Policy Committee of the Central Bank of Nigeria met on June 2,
2008. The Committee reviewed the major domestic and international macroeconomic
developments in the first five months of the year. It noted that despite
the stability in the economy during the period, there were many uncertainties
that could threaten the Central Bank’s objective of low and single digit
inflation.
The Committee decided as follows:
- strengthen the use of instruments such as open market operations and special sale of foreign exchange;
- raise the MPR by 25 basis points from 10.0 per cent to 10.25 per cent;
- increase the CRR by 100 basis points from 3.0 per cent to 4.0 per cent with effect from June 09, 2008; and
- set up a technical committee to work out other intervention securities to further strengthen the effectiveness of liquidity management.
202nd MPC Meeting of 1st April, 2008
The Monetary Policy Committee of the Central Bank of Nigeria met on April 1, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first quarter of the year. It noted that despite the stability in the economy during the quarter, there were many uncertainties that could threaten the single digit inflation objectives of the Bank. The Committee decided as follows to:
- raise the MPR by 50 basis points from 9.5 per cent to 10 per cent;
- issue treasury bills for liquidity management; and
- increase the sale foreign exchange as the need arises.
The reasons for the decisions included the current rate of inflation; the impact of that growth of monetary aggregates in 2007 on the first quarter of 2008; the impact of the continued inflow of foreign private capital into the economy and the actual and potential effect of the recent sharing of the naira equivalent of the excess crude oil revenue as well as the scheduled distribution of the second round in June, 2008. The proposed budget also contained significant increases in expenditure which would lead to fiscal deficits in the next two quarters.
201st MPC Meeting of February 2008
The Monetary Policy Committee of the Central Bank of Nigeria met on 5th February 2008 to review the major domestic and international macroeconomic developments and observed that the outlook for 2008 while being positive has many elements of uncertainty. The Committee, therefore, decided:
- To leave the Monetary Policy Rate (MPR) unchanged at 9.5 per cent
- To continue the use of open market operations (OMO) for liquidity management and appropriate exchange rate policies
MPC Meeting Decisions of Other Years
2007 | 2006 | 2005 | 2004 | 2003 | 1986 |
| Facts : 1/16/2006 |
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| The Cowry:The Cowry has, for centuries, served our people as an important form of currency. In 1860 the following system was in use: 40 Cowries formed a "String"; 50 Strings made a "head" and 10 heads comprised a "bag". In Lagos in 1865 one bag of 20,000 shells was exchanged for one or two English Pounds. |
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