The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has again retained the monetary policy rate, which determines interest rate, at 14%, the country’s highest in 10 years.
This is the 15th time that the committee has left the rate unchanged.
Godwin Emefiele, governor of the Central Bank of Nigeria, announced the committee’s decision at the bank’s headquarters on Tuesday.
According to the governor, all members of the committee were in attendance and all were in support of retaining rates.
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The committee also retained the Cash Reserves Ratio at 22.5 per cent, Liquidity Ratio at 30 per cent; and the Asymmetric Window which was at +200 and -500 basis points around the MPR.
“The committee continued recovery in output growth of the economy. output growth is expected to expand further. Output for growth remains fragile on the late implementation of the 2018 budget and after effects of flooding,” he said.
According to the governor, credit to government grew by 33.7% against 7.4% benchmark.
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“The near term risk to inflation remains campaign-related spending, the after-effect of flooding and insecurity in some of the food producing parts of the country,” he said.
“The outlook for inflation to increase in the near term before it gradually decreases by mid-year.”
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