CBN’s monetary policy committee meetings largely ineffective, says Cardoso

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Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) has declared that the Monetary Policy Committee (MPC) meetings conducted by the CBN have been largely ineffective in addressing the nation’s economic challenges.

He said this on Friday in his keynote address at the Annual Dinner of the Chartered Institute of Bankers of Nigeria held in Lagos.

Cardoso said that based on constitutional provisions, the MPC was required to meet four times a year and it has already done so this year.

He said, “This is what I, together with my team at the Central Bank have been focused on doing in the past two months. We have critically reviewed the effectiveness of the Central Bank’s monetary policy tools and have spent time fixing the transmission mechanism to ensure the decisions of MPC meetings actually result in desired objectives.

“For quite some time, there has been a dislocation of our monetary transmission mechanisms rendering the MPC meetings largely ineffective.

“For the avoidance of doubt, the Central Bank of Nigeria Act 2007 requires that the meeting of the Monetary Policy Committee of the Bank be held at least four times a year, and the Bank has satisfied this requirement for 2023. Our focus has been on ensuring these meetings are useful and effective.”

The MPC is responsible for formulating monetary and credit policy in Nigeria, with the primary objective of maintaining price stability and ensuring the stability of the financial system. It convenes quarterly to assess economic developments and make decisions on key policy rates.

Source: The Punch

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