Mr Godwin Eohoi, the Registrar Institute of Finance and Control of Nigeria on Wednesday commended the Monetary Policy Committee (MPC) for retaining Monetary Policy Rate (MPR) at 13.5 per cent.
Eohoi made the commendation while speaking in Abuja.
MPC had on Tuesday retained the MPR at 13.5 per cent while other policy parameters remained constant.
The committee also retained Cash Reserve Ratio (CRR) at 22.5 per cent and the Liquidity Ratio at 30 per cent as well as the Asymmetric Corridors at +200 and -500 basis points around the MPR.
The expert said he was not surprised at the action taken by MPC as he had predicted that the retention was necessary since the economy had started picking up considering the increase in the country’s Gross Domestic Product (GDP).
“The development is expected because no variable to make any changes, therefore the best thing is to retain all the rates.“If all things being equal, maybe anytime soon when the National Assembly must have passed the bill on Value Added Tax to 7.5 per cent and the implementation commences, there could be changes in rates.
“In view of this, more money will be generated for the government,’’ he said.
Meanwhile, the expert said the recent drop in the country’s foreign reserves could be as a result of dwindling crude oil prices.
