Godwin Emefiele, CBN Gov.
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained the monetary policy rate (MPR), which measures interest rate, at 11.5 percent.
The MPR is the baseline interest rate in an economy, every other interest rate used within an economy is built on the MPR.
The CBN Governor, Godwin Emefiele, said holding the interest rate and other parameters constant has impacted the economy positively.
He added that the committee voted to maintain the key lending rate at 11.5 per cent, with the asymmetric corridor of +100 and -700 basis points around the Monetary Policy Rate and liquidity ratio at 30 per cent while Cash Reserve Requirement was pegged at 27.5 per cent.
“The MPC feels a hold will signal its realisation of the fragility of the growth recovery and its sensitivity to emerging global and domestic uncertainties. Hence, the need to sustain policy trajectory,” Emefiele said.
“After a careful balancing of the benefits and downsides of each policy ratio, the MPC decided to hold all policy parameters constant.”
The committee added that inflation in most developed and emerging economies remain high, driven by persistent exchange rate fluctuations and supply bottlenecks.
