CBN retains 11.5 per cent lending rate

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has retained the monetary policy rate (MPR) at 11.5 per cent.

CBN governor Godwin Emefiele disclosed this after the committee’s two-day meeting in Abuja on Tuesday.

It also retained the cash reserve ratio (CRR) and liquidity latio at 27.5 per cent and 30 per cent respectively.

Announcing the committee’s decision, Emefiele said, “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the monetary policy rate at 11.5 per cent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the liquidity ratio at 30 per cent.”

He said, in the view of the MPC, although the economy has succeeded in exiting the recession, the recovery was very fragile, given that the GDP of 0.51 per cent was still far below population growth rate.

The committee, he noted, was of the strong view to consolidate on all administrative measures currently being taken to spur output growth.