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CBN MPC retains benchmark interest rate at 11.5%

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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the benchmark interest rate at 11.5 per cent.

The MPC voted unanimously to retain the Monetary policy rate at 11.5 percent during its meeting on Tuesday.

MPC also held same sentiment for the Asymmetric corridor which remained +100/-700 basis points, and The Cash Reserve Ratio (CRR) left at 27.5 percent.

The members of monetary authority also voted to keep the Liquidity Ratio at 30.5 percent, as the CBN governor, Godwin Emefiele, stated that the decision to maintain the perimeter constant was made to support economic growth recovery.

The committee noted that with sustained intervention from the CBN, economic activity will normalise in the short to medium term, “leading to improve output growth and lowering of inflationary pressure.”

READ ALSO: CBN confirms receipt of Kogi’s ‘hidden’ N19.3bn bailout funds, EFCC says

Outcome of the MPC meeting showed insecurity remained a major concern for the members, as they highlighted its impact on investors’ confidence, foreign investment inflow and the general economy.

Emefiele, who spoke on behalf of the MPC committee, said insecurity, “remains a key downside” and want security agencies to improve their effort in order to boost confidence in “movement of people, goods and services.”

MPC expressed optimism that food inflation – which was 18.34 percent in October 2021, against 17.38 percent recorded in October 2020 – will drop if insecurity in food producing areas [in the north where bandits and herdsmen are attacking motorists and farmers] is tackled.

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