Ex-ANAN president optimistic of CBN retaining rates at first meeting

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By Ige Adekunle

Sango-Ota (Ogun) Jan. 24, 2021 Dr Samuel Nzekwe, ex-President, Association of National Accountants of Nigeria, predicted on Sunday that the Monetary Policy Committee (MPC) of the CBN would retain November 2020 rates when it meets on Monday.

The MPC is scheduled to hold its maiden meeting for the year on Monday and Tuesday.

At its November 2020 meeting, the MPC retained Monetary Policy Rate at 11.5 per cent in an attempt at reversing recession and achieving medium term macroeconomic stability.

The committee also retained the Cash Reserve Ratio (CRR) at 27.5 per cent and Liquidity Ratio at 30 per cent.

Speaking with the News Agency of Nigeria (NAN) in Sango-Ota, Ogun State, Nzekwe said the committee would hold to the rates announced at the November 2020 meeting as it was too early to determine the direction the economy would go now.

“I am not expecting any drastic change in all the key rates instruments because of the effects of the current COVID-19 pandemic,’’ he said.

Nzekwe suggested, however, that the MPC should do a downward review of the CRR toward the second quarter of 2021 to enable banks to grant loans at lower interest rates.

This, he said, would enhance the establishment of new industries and boost economic activities as well as provide employment opportunities.

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