Key Outcomes of CBN’s MPC first Meeting in 2012

The Monetary Policy Committee held their first meeting of 2012 in Abuja yesterday and resolved to leave the key lending rate unchanged at 12%.

Commenting on the global economic situation in a press release on the CBN’s website, the committee raised an alarm on the slowdown of the economies of Nigeria’s major trading partners including China, India, Brazil, US, Uk and Germany. As a panacea to the disturbing trend the CBN has recommended an increase in domestic production to offset the potential shocks.

According to the statement, “The Committee felt that in the light of the expected deceleration in the economies of the country’s major trading partners, and the absence of adequate commitment of most advanced economies to effectively address  the fiscal imbalances and to reform their financial systems,  there would be  continued pressure on  Nigeria’s external sector in 2012.  The anticipated slack in external demand would, in the view of the Committee, have to be offset by generating the needed domestic demand. “

“In the Committee’s view, the opportunity to build on the robust non-oil growth with further investments in infrastructure and manufacturing and processing activities should be utilized in order to mitigate  any  negative impacts  from the  likely external shocks during the year.”

The committee also commented on the rising unemployment rates in the country and have called on the Federal Government to shift focus to technical and vocational education in order to reduce youth unemployment in the country.

2 Comments

1. 

   Anonymous

   February 1, 2012 at 10:22 am

   THE YOUTHS ARE UNEMPLOYED ,ITS NOT JUST RISING .

   I MEAN YOUTHS ARE TOTALLY UNEMPLOYED .
   COMPANIES RECRUITS ONLY FAMILY MEMBERS , MAJORING WHO DONT HAVE FAMILY MEMEBRS ROAM THE STREETS.

   ONE DAY YOUR ACTIONS FOR NOT GETTING THEM JOB ,WILL CREATE ANOTHER MONSTAR .

   MAYBE THEY WILL CHANGE TO SNIPERS . AT LEAST THEY WILL TARGET FROM DISTANCE WITH PRECISION
2. 

   Anonymous

   February 2, 2012 at 11:20 am

   FROM INTELLIGENCE SOURCE .
   THERE IS SHAKE UP IN NNPC , 38 NEW PROMOTED WHILE 28 RELOCATED .
   28 RELOCATED — THIEVES. THEY OUGHT TO BE JAILED .
   GMD — OUGHT TO RESIGN. NOT ENOUGH FOR NIGERIANS .
   THEY HAVE DO ALOT OF MESS WHICH HAVE AFFECTED THE LIFES OF NIGERIAN BADLY .
   THEY NEED TO BE SACKED WITHOUT COMPENSATIONS