The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, on Tuesday left the Monetary Policy Rate, MPR, unchanged at 14 per cent making it the 15th time that the committee would be retaining the rate.
The CBN Governor, Mr Godwin Emefiele, announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.
He explained that all the eleven members of the committee that attended the meeting agreed to maintain the current monetary policy stance.
Emefiele said apart from the MPR which was retained at 14 per cent, the committee also retained the Cash Reserves Ratio at 22.5 per cent.
Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.
The apex bank governor stated that all members of the committee were in attendance and all were in support of retaining rates.
“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 Emefiele, credit to government grew by 33.7 per cent against the 7.4 per cent benchmark.
“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.
“The outlook for inflation to increase in the near term before it gradually decreases by mid-year,” said the CBN governor.