CBN Governor, Mr. Godwin Emefiele announced on Tuesday that the Central Bank of Nigeria has retained the monetary policy rate at 11.5%, with the asymmetric corridor of +100/-700 basis points around the MPR.
He made this announcement after a two days Monetary Policy Committee (MPC) meeting which started on Monday in Abuja.
During the announcement, Mr. Emefiele said economic recovery remains delicate, despite the GDP growth, thereby urging the government to join efforts on addressing the security and infrastructural challenges affecting the nation’s growth.
“In the view of the MPC, although the economy has recovered from recession; the recovery was very fragile given that the GDP of 0.51% was still far below population growth rate,” Mr. Emefiele said.
He noted that the bank also retained other parameters, adding that the committee voted to retain the Cash Reserve Ratio (CRR) at 27.5% as well as the Liquidity Ratio at 30%.
According to him, the move is expected to boost economic growth, despite four-year high inflation, after the country exited recession last year.
The National Bureau of Statistics (NBS) recently reported that the nation’s gross domestic product (GDP) rose by 0.51% in the first quarter of 2021.