CBN Withholds Interest Rate at 11.5%, Liquidity Ratio at 30.0%

By Aduragbemi Omiyale

All the major policy parameters have been retained at their previous levels by the Central Bank of Nigeria (CBN), Business Post reports.

The retention of the rates was announced by the Governor of the apex bank, Mr Godwin Emefiele, at the end of the Monetary Policy Committee (MPC) meeting on Monday, March 21, 2022.

While addressing newsmen in Abuja this afternoon, the nation’s chief banker said the team decided not to toe the line of other central banks because the situation in the country was peculiar to others.

According to him, there is the need to allow the economy to stand on its feet firmly because considering a change in the rates amid rising inflationary pressures.

Mr Emefiele informed reporters that the committee felt leaving the rates intact was the best line of action at the moment as it would be beneficial in driving economic growth.

Consequently, the MPC agreed to leave the Monetary Policy Rate (MPR) at 11.5 per cent, the Asymmetric corridor around the MPR at +100/-700bps, the Cash Reserve Ratio (CRR) at 27.5 per cent and the Liquidity Ratio (LR) at 30.0 per cent.