The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, is concerned about the continuous rise in inflation and has increased the Cash Reserve Ratio, CRR, from 22.5 percent to 27.5 percent
Speaking at the first MPC meeting for 2020, CBN Governor, Godwin Emefiele, said the move has become important to mop up liquidity and control inflation.
The MPC also called on the Federal Government to come up with innovative ways of solving challenges that induce inflation such as the farmers-herders clashes.
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The meeting also urged banks to sustain the borrowing to the real sector which was observed has increased by N2 trillion.
Other key rates which include the interest rate was retained at 13.5 percent.