The NESG MPC (Monetary Policy Committee) Alert for January 2020, The Nigerian Economic Summit Group
Jan 2020

MPC appears hawkish; raises CRR by 5 percentage points

The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) held its first meeting of the year 2020 on January 23-24. At the meeting, MPC committee members, with a vote of 9 to 2, agreed to increase the Cash Reserve Ratio (CRR) by 500 basis points to 27.5%. This represents the second time in five years that the MPC will increase the CRR, following the harmonization of the CRR for public and private sectors in May 2015 (see Figure 1).1 However, other monetary policy parameters were kept unchanged: Monetary Policy Rate (MPR) at 13.5%, liquidity ratio at 30% and an asymmetric corridor of +200/-500 basis points around the MPR.


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