 |
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
|
What Is The Credit Channel Of Monetary Policy Transmission?Monetary policy works in part by altering credit flows. The use of legal reserve requirements provide monetary authorities with considerable leverage over the quantity of funds that banks may maintain, just as open market sales reduces the real quantity of deposits banks can issue. This in turn indu [Read more]
|
Posted: 14 years ago |
|
Applying Critical Thinking Skills in the WorkplaceIn the 2018 Future of Jobs Report published by the World Economic Forum, critical thinking been identified as one of the skills that is increasingly required in the workplace. This report underscores the relevance of critical thinking skills at work. As simple as the term may seem, many people do no [Read more]
|
Posted: 8 years ago |
|
Making the Most of Year 2024 - A ContemplationAs we are about to get into June, signifying the end of the first half of the year, it's a perfect time to reflect on how to turn the rest of 2024 into something truly fulfilling. Depending on the level of achievement of your set goals for the year, we have put together some ideas to guide your [Read more]
|
Posted: 2 years ago |
Featured Video
Invest in your success with Nigerian Seminars and Trainings!