Interest Rates Behaviors and Monetary Policy Response

Author: Central Bank Of Nigeria (CBN) - Education Series

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

More articles by Central Bank Of Nigeria (CBN) - Education Series Login to Download full article

Tags:

Interest Rates Stability Deposit Lending Facility.

	Do I Really Need All My Teeth? There are many among us who think it is no big deal to have a few missing teeth. In fact some of you reading this article would no doubt have lost one or more teeth and you most likely are not missing the tooth or teeth or at least you tell yourself that. However, it would be difficult to not notice [Read more]	Posted: 13 years ago
	What Got You Here Wont Get You There: A Business Perspective In today’s rapidly evolving business landscape, "What Got You Here Won't Get You There" serves as a crucial reminder for companies striving to maintain relevance and drive sustainable growth. As markets shift, technologies advance, and consumer expectations evolve, the strategies [Read more]	Posted: 2 years ago
	Understanding Transformational Leadership In our day-to-day interactions with managers and leaders in the workplace, there is one thing we often remember - the impact they had on our lives or how they made us feel even when we no longer work with them. The words and/or actions of a leader could be the reason why an individual is motivated t [Read more]	Posted: 4 years ago