Contrary to the widespread calls for a lowering of the interest rate including by the Minister of Finance Kemi Adeosun, the Central Bank of Nigeria has left all the key indicators unchanged.
CBN Governor Godwin Emefiele said lowering the interest rate now was not advisable.
Presenting the communique of the two-day meeting of the Monetary Policy Committee to journalists in Abuja on Tuesday, the CBN retained the Monetary Policy Rate at 14%, Cash Reserves Ratio at 22.5%, Liquidity ratio at 30% and Corridor at +200 BPS and -500 BPS around MPR.
The meeting was essentially focused on how to address rising inflation.
Emefiele said the committee observed that reduced lending rate had failed its purpose. He said the outlook for inflation in the medium term appeared benign.
More Details later.