The
Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has warned that
economic recession is imminent. According to The Cable, Emefiele said this
during the apex banks's monetary policy committee (MPC) meeting.
"The
conditions that led to the contractions in the first quarter of 2016 were still
largely unresolved. The recession which was signaled in July 2015, now appears imminent.” he said
According
to Emefiele, the previous decisions of the MPC need time to crystallize, hence,
there was no need adjusting rates. Stating the decision as the least risky
option, the committee asked the CBN to work on a flexible exchange rate system.
It
did not mention whether or not devaluation of the Naira was needed. The bank
said the monetary policy rate (MPR) and cash reserve ratio (CRR) will remain at
12 percent and 22.5 percent respectively.
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