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CBN holds interest rate at 14%

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JUST IN: CBN holds interest rate at 14%

The Monetary Policy Committee (MPC) of the Central bank of Nigeria (CBN) has again held its main lending rate at 14 percent to further ensure stability in the economy.

The MPC had increased the interest rate, which determines the rate at which banks give out loans, by 200 basis points to a record high of 14 percent in July, 2016, to curtail rising inflation and salvage Nigeria’s recessed economy.

Godwin Emefiele, CBN Governor, while disclosing the outcome of the meeting on Tuesday, said the committee reached the conclusion to allow more clarity on economic activities.

Emefiele said eight members of the committee voted to retain the policy rate.

Read also: CBN may consider lowering rate as investments-driving sectors slow

This is the second policy rate decision by the committee after it admitted five new members upon the approval of the National Assembly.

The Nigerian Senate had in March, 2018, approved the appointments of two new deputy governors of CBN and nomination of three out of the four members of the MPC submitted by President Muhammadu Buhari.

The apex bank also left the asymmetric corridor unchanged at +200 basis points and -500 basis points, Cash Reserve Ratio at 22.5 percent, and Liquidity Ratio at 30 percent.

 

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