Regulatory Alerts2010-11-23 | MPC COMMUNIQUE NO. 73CBN Communique No. 73 of the MPC Meeting, November 22-23, 2010
The Central Bank of Nigeria's Monetary Policy Committee (MPC) in its meeting held on the 22nd and 23rd of November, 2010 maintained the Monetary Policy Rate (MPR) at 6.25 per cent. The Committee also adjusted the corridor to +/- 200 basis points, implying a Standing Lending Facility (SLF) rate of 8.25 per cent and a Standing Deposit Facility (SDF) rate of 4.25 per cent. The decision was made amidst rising inflation levels, elevated demand for foreign exchange, and an increase in government expenditure and borrowings with possible crowding-out effects on the private sector. The Committee remained committed to maintaining a stable exchange rate and retaining flexibility while allowing the effect of previous rate increases to work through the system. The MPC continued to urge greater fiscal responsibility and commitment to reforms that would enhance the effectiveness of monetary policy.