Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, says he expects the Monetary Policy Committee, MPC, to retain interest rate at 14 per cent at next week’s MPC meeting.
The meeting is scheduled to hold January 22 to 23, 2018, after which its decision on Monetary Policy Rate, MPR, Cash Reserve Ratio, CRR, Liquidity Ratio and Asymmetric Corridor will be announced.
MPC has kept the key rate, MPR, at a record high 14 per cent since July 2016, trying to balance bringing down inflation and boosting an economy that exited recession during the second quarter of last year.
In an interview with Bloomberg in Abuja, Emefiele said: “I don’t think the interest rates will change; does economic data portend any significant changes in the policy rates? We don’t see that. Normally, when you begin the year, what you find is that you want to hold the policy rate steady.”
He stated that, since the peaking of interest rate at 18.7 per cent in January 2017, the interest rate had maintained a downward trend for eleven consecutive months to 15.4 per cent in December.
The central bank, which targets a range of six per cent to nine per cent, is making “very good progress” bringing the rate down.