JUST IN: CBN MPC retains 14% interest rate, says inflation drop not sustainable

The Monetary Policy Committee of the Central Bank of Nigeria on
Thursday left the Monetary Policy Rate unchanged at 14 per
cent.

The monetary policy is the process by which the monetary
authority of a country, typically the central bank or currency
board, controls either the cost of very short-term borrowing or the
monetary base, often targeting an inflation rate or interest rate
to ensure price stability and general trust in the currency.

The CBN Governor, Mr. Godwin Emefiele, announced the decision of
the committee at the end of a two-day meeting held at the apex
bank’s headquarters in Abuja.

He explained that all the 11 members of the committee that
attended the meeting agreed to maintain the current monetary policy
stance

He said apart from the MPR which was retained at 14 per cent,
the committee also retained the Cash Reserves Ratio at 22.5 per
cent.

Also retained are the Liquidity Ratio, which was left at 30 per
cent; and the Asymmetric Window, which was left at +200 and -500
basis points around the MPR.

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