![]() |
Interest Rates Behaviors and Monetary Policy Response |
A stable deposit base as opposed to volatile, short-term funds has started to impact positively on interest rates stability. In order to fast track interest rates stability, the CBN introduced a new framework for the implementation of monetary policy in December of 2006. As part of the new framework, the Bank established a standing deposit and lending facility and replaced the MRR with the Monetary Policy Rate (MPR) which was initially set at 10.0 per cent (but reviewed downwards subsequently). The entire system was designed as a corridor with the lending facility as the upper bound of the corridor while the deposit facility served as the lower bound. The entire corridor had a width of 600 basis points with the MPR at the centre….
Enjoy this article? Feel free to share your comment, idea or opinion in the comment section
Related Articles
![]() |
Entrepreneurship Development Programme in Higher Education: A Nigerian PerspectiveEntrepreneurship education serves as a panacea to social economic problems. The present situation in Nigeria posed serious threats and challenges to both government and well-meaning citizens. These socio-economic problems call for different strategies and action for it to be ameliorated. Entrepreneu [Read more]
|
Posted: 3 years ago |
![]() |
Nominal Anchor for Monetary PolicyA nominal anchor for monetary policy is a single variable or device which the central bank uses to pin down expectations of private agents about the nominal price level or its path or about what the Bank might do with respect to achieving that path (Krugman, 2003). Generally, the two kinds of nomina [Read more]
|
Posted: 12 years ago |
![]() |
Career Transitioning - A GuideWe are living in a very transient world where things are constantly changing and shifting. Many years ago, petroleum engineering was one of the most lucrative professions to jump into. With the oil boom days now over, with so much talk about climate change and the need to move from fossil fuels to a [Read more]
|
Posted: 2 years ago |