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Good Morning Nigeria: MPC's call for unconventional policy tools

​MPC’s call for unconventional policy tools

The communiqué at the end of the meeting of the monetary policy committee (MPC) in late November regretted that the reduction in banks’ cash reserve requirement (CRR) two months previously from 31% to 25% had only benefited borrowers in sectors with low employment elasticity. It therefore instructed the CBN management to devise regulations and measures to ensure that the subsequent cut in the CRR of five percentage points (to 20%) reached employment generating sectors such as agriculture, infrastructure, solid minerals and industry. This is the message from the latest personal statements of MPC members.

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