The Central Bank of Nigeria (CBN) Friday resolved to retain Monetary Policy Rate (MPR), otherwise known as interest rate, at 11.5 per cent.
CBN Governor, Godwin Emefiele, announced this at the end of the 2-day meeting of Monetary Policy Committee (MPC).
It also retained the cash reserve ratio and liquidity ratio at 27.5 per cent and 30 per cent respectively.
According to Emefiele, the decision to hold the rates constant was to support the current growth recovery.
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“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 per cent.
“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent,” Emefiele said.
He added that MPC members felt that tightening would contract the current level of system liquidity and thus reduce demand pressure on the forex market.