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2022-11-10
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Copyright (c) 2022 Ihenetu Hyginus I. PhD, Isoboye Jacob Damieibi. PhD
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Assessement Of Monetary Policy And The Growth Of Manufacturing Sectors In Nigeria
Ihenetu Hyginus I. PhD
Department of Banking and Finance, Captain Elechi Amadi Polytechnic Rumuola Port Harcourt
Isoboye Jacob Damieibi. PhD
Captain Elechi Amadi Polytechnic Rumuola, Port Harcourt
Keywords: Monetary Policy, Monetary Policy Rate, Cash Reserve Ratio, Manufacturing Sectors etc
Abstract
The paper investigated the effect of monetary policy on the growth of manufacturing sector in Nigeria. Data were collected from Security and Exchange Commission (SEC) on quarterly bases from 2010 to 2020. Expost facto design was employed for the study. Ordinary least square regression was used to analyze the data. The findings showed that monetary policy rate has no significant effect on growth of manufacturing sector in Nigeria, cash reserve ratio has a positive and significant effect on growth of manufacturing sector in Nigeria and liquidity ratio has no significant effect on growth of manufacturing sector in Nigeria. Based on the findings, we therefore recommend that government should reduce the monetary policy rate to enable deposit money bank cut down their interest rate to a single digit in order to motivate the manufacturing sector to obtain funds and grow the economy, government should sustain the cash reserve ratio because of its contribution to the growth of manufacturing sector in Nigeria etc.