CBN Keeps Key Lending Rate Intact at 11.5%

By Modupe Gbadeyanka

The monetary policy rate (MPR) in Nigeria has been left unchanged for another period at 11.5 per cent, the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, has declared.

Addressing newsmen on Tuesday in Abuja after the two-day Monetary Policy Committee (MPC) meeting of the apex bank, Mr Emefiele disclosed that the decision to retain the anchor interest rate was taken unanimously by members of the committee.

He explained that it was because the team felt tightening or loosening the key lending rate and the others could tamper with the progress made so far with the interventions of the central bank.

The CBN chief noted that at the meeting, which commenced on Monday, the members took a critical look at the effects of the various interventions as well as the gradual easing in inflation to 15.99 per cent in October 2021 and the 4.03 per cent growth in the gross domestic product (GDP) in the third quarter of the year and decided it was best to leave the rates.

Consequently, the MPC voted to maintain the MPR at 11.5 per cent, the Asymmetric Window retained at +100 and -700 basis points around the MPR, the Liquidity Ratio (LR) was left at 30 per cent and the Cash Reserve Ratio (CRR) was kept at 27.5 per cent.