The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate at 13.5 per cent.
The CBN Governor, Mr Godwin Emefiele, disclosed this decision during a press conference at the end of a two-day MPC meeting held on Tuesday at the apex bank’s headquarters in Abuja.
He explained that nine out of the 11 members that attended the meeting agreed to retain the current monetary policy stance.
He added that apart from the MPR that was retained at 13.5 per cent, the committee decided to hold the Cash Reserves Ratio at 22.5 per cent and retain liquidity ratio at 30 per cent.
“The MPC decided against the backdrop of these developments by a vote of nine members out of eleven, to hold all parameters of MPC constant. Two members voted, however, to reduce the MPC by 25 basis point.
“The MPC voted to retain MPR at 13.5%. Retain CRR at 22.5%. Retain liquidity ratio at 30%.”
The Asymmetric Window which was left at +200 and -500 basis points around the MPR.
In March 2019, the committee had reduced the rates from 14 per cent to 13.5 per cent, the first time the MPR was reduced since July 2016.
Mr Emefiele explained that the cut in the rates was to support the nation’s feeble economic growth at this time.