Inspite of the concerns raised by the National Bureau of Statistics (NBS) on the country’s inflation rate, the Central Bank of Nigeria (CBN) has retained the country’s lending rate at 11.5 percent, saying the move will help ensure economic growth.
The apex bank also stated in the new Monetary Policy Rate (MPR) that the asymmetric corridor has been left at +100 and -700 basis points.
Announcing the decision on Friday after a Monetary Policy Committee (MPC) two-day meeting in Abuja, the CBN Governor, Godwin Emefiele, disclosed that the Cash Reserve Ratio and Liquidity Ratio were untouched at 27.5 percent and 30 percent respectively.
Emefiele hinted that the rates were maintained during the meeting after a thorough evaluation of the economy and review of analysts’ discussion on the financial issues across the country.
The governor said: “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 percent”.
Emefiele’s announcement came days after the NBS released the inflation rate and disclosed that Nigeria’s inflation has dropped to 17.01 percent in August.
It would be recalled that at its last meeting in July, the CBN MPC voted to hold all policy parameters constant, believing that it would enable the continued passage of current policy measures in supporting the growth recovery recorded in the second quarter and macro-economic stability.