The Bank also increased the portion of customers’ deposits that banks must keep as cash, known as the Cash reserve ratio, to 22.5 percent from 20 percent, while it retained the liquidity ratio (LR) at 30 percent. The Bank also increased the portion of customers’ deposits that banks must keep as cash, known as the Cash reserve ratio, to 22.5 percent from 20 percent, while it retained the liquidity ratio (LR) at 30 percent. CBN Governor, Mr. Godwin Emefiele, announced these decisions at the end of the Monetary Policy Committee (MPC) meeting held yesterday. Emefiele said that the decision to tighten money supply was because the balance of risk was against inflation.]]>