 |
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
|
Five Ingenious Ways to Improve Yourself in the New YearWith the coming of a new year, it is very easy to fall back into old habits. This is especially possible if you’re not actively thinking and practicing how to have a new kind of year. You might end up feeling like you’re in a ditch or stuck. And that’s not good.
It is im [Read more]
|
Posted: 8 years ago |
|
How Does The Central Bank Decide the Appropriate Setting for its Monetary Policy Instruments?Monetary policy affects all aspects of our economic and financial decisions-whether to buy a car, build a house, start up a business or to expand the existing one, whether to send one’s child to school or to make the child learn a trade. Monetary policy tries to influence the performance of th [Read more]
|
Posted: 15 years ago |
|
A Closer Look at Nigeria’s Economic PerformanceUncertain Performance - Just how well is the Nigerian Economy performing? In the absence of a holistic report articulating the economic performance of Nigeria, no one could claim to know. There are only a lot of partial views on different aspects of the economy being expressed by different governmen [Read more]
|
Posted: 14 years ago |
