 |
Interest Rates Behaviors and Monetary Policy Response |
A stable deposit base as opposed to volatile, short-term funds has started to impact positively on interest rates stability. In order to fast track interest rates stability, the CBN introduced a new framework for the implementation of monetary policy in December of 2006. As part of the new framework, the Bank established a standing deposit and lending facility and replaced the MRR with the Monetary Policy Rate (MPR) which was initially set at 10.0 per cent (but reviewed downwards subsequently). The entire system was designed as a corridor with the lending facility as the upper bound of the corridor while the deposit facility served as the lower bound. The entire corridor had a width of 600 basis points with the MPR at the centre….
Enjoy this article? Feel free to share your comment, idea or opinion in the comment section
Related Articles
|
Monetary Policy Instruments Used By the CBNUntil about 1993 when OMO was introduced, the CBN relied almost exclusively on varying combinations of direct instruments of monetary control from time to time. These instruments included: credit ceilings, secretarial credit allocation, interest rate controls, imposition of special deposits, moral s [Read more]
|
Posted: 14 years ago |
|
|
How Does Monetary Policy Affect Economic Growth?The central bank tries to maintain price stability through controlling the level of money supply. Thus, monetary policy plays a stabilizing role in influencing economic growth through a number of channels. However, the scope of such a role may be limited by the concurrent pursuit of other primary ob [Read more]
|
Posted: 14 years ago |
|
A 10-Step Process to Delegate EffectivelyEffective delegation is a skill which is often overlooked by busy managers who think that they already do this well enough. However during our training and workshops we discover that many managers have completely the wrong idea about what effective delegation actually is and the benefits that can be [Read more]
|
Posted: 14 years ago |
Featured Video
Invest in your success with Nigerian Seminars and Trainings!