Highlights

Yet again, the Monetary Policy Committee (MPC) took decisive steps to address the stubbornly high inflation by implementing another round of measures. One of the significant changes was adjusting the asymmetry corridor to incentivise banks to deposit excess funds (Standard Deposit Facility: 25.75%), while simultaneously discouraging banks from borrowing (Standard Lending Facility: 31.75%). The corridor was modified from +100/-300 to +500/-100 basis points around the Monetary Policy Rate (MPR), which now stands at 26.75%.

In Summary:

—> Monetary Policy Rate: 26.75% from 26.25%.

—> Asymmetric Corridor: +500/-100 basis points around the MPR.

—> CRR: 45.00%.

—> CRR of Merchant Banks: 14%.

—> Liquidity Ratio: 30.00%.

Click here “July 2024 MPC Decision – Inflationary Pressure Incite Another Hawkish Stance” to view the full report.

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