CBN Retains Monetary Policy Rate at 13.5%

By Dipo Olowookere

The Central Bank of Nigeria (CBN) on Tuesday announced the retention of the benchmark interest rate at 13.5 percent.

Governor of the CBN, Mr Godwin Emefiele, made the announcement this afternoon in Abuja after the end of the two-day Monetary Policy Committee (MPC) meeting, which started on Monday.

Mr Emefiele explained that the Monetary Policy Rate (MPR) rate was unanimously left unchanged by the committee in order to monitor the recent steps taken by the apex bank.

Last Monday, the apex bank announced the release of N50 billion intervention fund to support the economy. Two days later, it said it would provide N1 trillion stimulus for the economy, especially to the those in the healthcare sector.

Speaking during a briefing today, Mr Emefiele said these interventions were applauded by members of the committee, who said time should be given to see the impact of these steps on the economy before a decision can be reach whether to raise or reduce the rates.

As a result, they opined that for now, all the rates should be left unchanged and watch as event unfolds, especially the impact of the last increase in the cash reserve ratio.

Announcing the outcome and decision of the committee, the CBN chief said members agreed that the MPR should remain at 13.5 percent, the Asymmetric Ratio should be kept at +200 and -500 basis points around the MPR, the CRR should stay at 27.5 percent, while the Liquidity Ratio should remain constant at 30 percent.