CBN retains interest rate at 11.5%

The Central Bank of Nigeria’s Monetary Policy Committee has retained the Monetary Policy Rate (MPR) at 11.5 per cent and kept all other parameters unchanged.

CBN Governor Godwin Emefiele made the announcement while addressing journalists at the MPC meeting in Abuja on Monday.

The MPR, which has remained unchanged for months, is a tool for regulating interest rates in the economy.

Lowering the rate could have stimulated more borrowing while raising the rate could have signaled the CBN’s intention to reduce the

Emefiele also said the sanctions against Russia would have a significant downside risk to the global economy.

He also pointed out that the gains of economic growth which were recorded as a result of lifting restrictions has been eroded by the Russian-Ukraine crisis.

He blamed the high energy prices experienced by the country on the Russian-Ukraine conflict.

Emefiele said the MPC noted that high energy prices have aggravated Nigeria’s inflation.

He also said that the poor power supply has also compounded the country’s inflationary pressure.

Based on these considerations, Emefiele said the MPC retained the Monetary Policy Rate at 11.5 per cent; asymmetric corridor at +100/–700 basis points around the MPR; Cash Reserve Ratio at 27.5 per cent; and Liquidity Ratio at 30.0 per cent.

The Governor said three members voted for a 25 basis points increase, one member voted for a 50 basis points increase, while six members voted for the retention of the rates.