MPR Reduction Signals More Deliberate Measures Imminent
The Monetary Policy Committee at the end of its meeting today signaled an accommodative posture with a reduction of the Monetary Policy Rate (MPR) by 100bps to 12.5%, citing the need to rapidly stimulate aggregate demand in a bid to accentuate a fast recovery of the economy and possibly avoid prolonged contraction in economic activity as measured by GDP.
The committee voted to maintain the Cash Reserve Ratio (CRR) at 27.5%, Liquidity Ratio at 30% and asymmetric corridor around the MPR at +200/-500bps.
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