BEVERLY HILLS, May 23, (THEWILL) – The monetary policy committee, MPC, of the Central Bank of Nigeria, CBN, has voted to hold key interest rate at record 14 per cent, while seeking convergence in foreign exchange market.
The CBN also decided to leave the existing Cash Reserve Ratio, CRR, for commercial banks at 22.5 per cent and the Liquidity Ratio at 30 per cent, even as the asymmetry corridor is maintained at +200 and -500 basis point.
Governor of the central bank, Godwin Emefiele, made this known to newsmen at the end of the meeting in Abuja on Tuesday, disclosing that all members of the committee voted to hold interest rate at current figures.
According to him, “The MPC was of the view that whereas the downward trend in inflation is a welcome development, the rate was still significantly above the policy reference band.
“Committee is particularly with the gradual retreat in inflation, the relative stability in the naira exchange rate across all segments of the market and the improved prospect of foreign inflows.
“The monetary policy committee this is intended to allow the existing policies to achieve their goals and objectives.
“The committee was also concerned that loosening will excercebate inflationary pressure and worsen the gains so far achieved in exchange rate of the naira. It was also convinced that loosening will further increase the negative interest rate.”
This is the fifth time in a row that the nation’s apex bank has decided to leave all rates at the same level.
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