By Emma Ujah, Abuja Bureau Chief
The Central Bank of Nigeria, CBN, has announced the retention of the Monetary Policy Rate, MPR, at 12 percent, and a corridor of +/-200 basis points.

Dr. Sarah Alade, Acting Governor of the apex bank, announced this at the end of the 95th Monetary Policy Committee, MPC, meeting which held between Monday and yesterday in Abuja.

She added that the Cash Reserve Ratio of public and private deposits were also retained at 75 percent and 15 percent, respectively, on the basis of concerns of high liquidity in the system.

She said: “The committee unanimously voted to retain the current stance of monetary policy. In addition, one member voted for an asymmetric corridor around the MPR.

“Consequently, the committee voted to hold the MPR at 12 percent. It will also keep the CRR on public sector deposits at 75 percent and CRR on private sector deposits at 15 percent and retain the MPR corridor at +/-200 basis points.”

She expressed concern that systemic banking liquidity and high electioneering expenditure at the face of the approaching 2015 general elections were risk factors against the macro economic stability which the nation had enjoyed in the last several months.

Alade said: “Internally, the key risk factors include the high systemic banking system liquidity, elevated security concerns and anticipated high election related spending in the run up to the 2015 general elections.

“High domestic liquidity could exert sustained pressure on both the exchange rate, consumer prices and accentuate the already high demand for foreign exchange.”