The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 13.5 percent while other policy parameters remained constant.
The CBN Governor, Godwin Emefiele, disclosed this after the MPC’s meeting in Abuja on Tuesday.
Emefiele said all the 11 members of the committee attended the meeting and unanimously voted for the decision.
He said the committee also retained Cash Reserve Ratio (CRR) at 22.5 percent and the Liquidity Ratio at 30 percent.
The CBN said the MPC also retained the Asymmetric Corridors at +200 and -500 basis points around the MPR.
He explained that the committee reviewed the upside and downside on the option to tighten, loosen or hold.
Emefiele said while tightening might encourage capital flow, it also had downside consequences of tightening the already nascent recovery outlook growth.
He said the MPC noted that the reduction in the policy rate would improve growth prospects but in view of optic inflationary pressure, decided that the balance of the risk was in favour of protecting price stability. (NAN)