Mr. Tope Fasua, an economic expert said the retention of Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) was in order.
Fasua said this while reacting to the outcome of MPC meeting during an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.
NAN reports that the MPC on Friday retained MPR at 13.5 percent and also retained Cash Reserve Ratio (CRR) at 22.5 percent as well as the Liquidity Ratio at 30 percent.
Fasua explained that having reduced the MPR by 50 basis points a couple of meetings ago, the committee had to observe for now and not pull all the stops.
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“There is much fragility in the horizon as we saw how quickly crude oil prices corrected after the unfortunate bombing of some Saudi Arabia’s refineries and the resultant shut-in.
“Organisation of Petroleum Exporting Countries (OPEC) predicts weak oil prices next year and Organisation for Economic Co-operation and Development (OECD) countries are expecting the onset of another global recession,” he said.
The expert said that with this development, the best the MPC should do was to observe.