By Chinyere Joel-Nwokeoma
A Professor of Finance and Capital Market has said that Central Bank of Nigeria (CBN) would reduce the Cash Reserve Ratio (CRR) by five per cent during its Monetary Policy Committee (MPC) meeting on Thursday.
Prof. Uche Uwaleke of Nasarawa State University made the prediction in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos.
Uwaleke, who spoke on the expectations from the meeting slated for May 28, said the MPC would likely reduce the CRR from 27.5 per cent to its previous level of 22.5 per cent.
“The MPC will most likely adopt a slightly dovish approach which may entail reducing the CRR from 27.5 per cent to its previous level of 22.5 per cent, while retaining the other policy rates.
“That is, the MPR at 13.5 per cent, Liquidity Ratio at 30 per cent and the asymmetric corridor at +2-5.
“A reduction in the CRR will be the right decision to take as it will free up some funds for banks given that they are not remunerated for…
Source: News Agency of Nigeria
