Godwin Emefiele, CBN Gov.
BY NKECHI NAECHE-ESEZOBOR–The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 11.5 per cent.
The CBN Governor, Godwin Emefiele, disclosed this after the committee’s meeting in Abuja on Tuesday.
It also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively, while Asymmetric Corridor was left at +100 and -700 basis points around the MPR.
Emefiele noted that the MPC meeting unanimously agreed to hold all other monetary policy parameters constant.
He added that the parameters were retained to sustain the growth of the economy.
“This meeting MPC was gratified that its policy actions in the past had started to yield positive result through remarkable improvement in Gross Domestic Product, which stood at 4.03 percent during the third quarter of 2021.
“There was also the sixth consecutive month moderation in inflation to 15.99 percent in October.
“Given the level of its conviction about the efficacy of its actions on macroeconomic variables, MPC felt that tightening could increase cost of funds and constrain growth, while loosening could compound distortion in the money market.
“The MPC believes that the existing monetary policy stance has supported economic growth and recovery and should be allowed to continue for a little longer for consolidation.”
“The committee also feels that the old stance will enable it to carefully access the implication of unfolding global developments around policy deepening and normalisation by the advanced economies.”
