SAN FRANCISCO, April 04, (THEWILL) – The New Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at the current level of 14.00%, Liquidity Ratio at 30% Asymmetric corridor at +200bps/-500bps.
According to Godwin Emefiele, who addressed a press conference in Abuja on Wednesday, the MPC unanimously voted to retain key rates.
“The committee noted that loosening will strengthen the outlook for growth by stimulating domestic aggregate demand through reduced cost of borrowing,” Emefiele said.
“This may, however, lead to a rise in consumer prices, generating exchange
rate pressure on the currency in the process
“The committee also believes that loosening could worsen the current account balance through increased importation.
“On the argument to hold, the committee believes that key variables have continued to evolve in line with the current stance of macroeconomic policies, and should be allowed more time to fully manifest.
“In consideration of the foregoing, the committee decided unanimously by a vote of all members present, to retain monetary policy rate (MPR) at 14 percent, alongside all other policy parameters.”