 |
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
|
Accountability: Effective Managers go FirstAfter attending one of my seminars, Jay Bertram, president of the Toronto office of TBWA, the global advertising agency, returned to his office and immediately asked all his people to evaluate their overall job satisfaction, their feelings about the office and (most critically) their overall rating [Read more]
|
Posted: 17 years ago |
|
Nigeria Remains a Strong Growth Market for WheatNigeria’s demand for wheat based foods is large and growing. The GON cassava flour import-substitution initiative is impacting U.S. wheat market share negatively but market share is expected to rebound as Nigeria and its neighboring countries continue to demand high quality wheat based food s [Read more]
|
Posted: 14 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: 14 years ago |
Featured Video
Invest in your success with Nigerian Seminars and Trainings!