CBN, MPC Retains Interest Rate At 14%
The monetary policy committee of the central bank of Nigeria has retained monetary policy arte at 14% for the 11th consecutive time.
The rate first raised in July 2016 to combat rising inflation.
Briefing journalists on Tuesday at the end of the committee’s two-day meeting, Godwin Emefiele, Governor of the Apex bank, said seven of the nine committee members voted in favour of holding the rate.
He noted that “the committee considered tightening because it would curb the threat of rising inflation even as the injection from the fiscal authority will provide substantial liquidity.
“It will rein in inflationary pressures and bring inflation to single digit levels. It will also awaken consumption and raise the cost of borrowing to investors in the domestic economy.
“Loosening could reverse the gains already made with lowered importation, lower bank’s risk appetite and increase non-performing loans.