CBN retains benchmark interest rate at 11.5%

The monetary policy committee of the Central Bank of Nigeria (CBN) has announced its decision to retain the monetary policy rate (MPR) at 11.5 percent.

At its last meeting, the committee members also voted to retain MPR at 11.5 percent – the rate it had been since September 2020.

Godwin Emefiele, governor of the apex bank, announced the committee’s decision on Tuesday at the end of a two-day meeting at the CBN headquarters in Abuja.

“The MPC made the decision to hold all policy parameters constant. Committee thus decided by a unanimous vote to retain monetary policy rate at 11.5%,” Emefiele said.

“MPC voted to retain asymmetric corridor +100 -700 basis points. It also voted to retain cash reserve ratio at 27.5% and retain liquidity ratio at 30%.”

The action of the CBN monetary policy committee is in line with the recommendation of the IMF.

In its latest World Economic Outlook (WEO) released on Tuesday, IMF advised central banks to look through transitory inflation pressures and avoid tightening until there is more clarity on underlying price dynamics.

“Clear communication from central banks on the outlook for monetary policy will be key to shaping inflation expectations and safeguarding against premature tightening of financial conditions,” IMF said.

The Washington-based institution projected growth of 2.5 percent for Nigeria in 2021 on the slow rollout of vaccines.