11.5% Monetary Policy Rate has been maintained by the Monetary Policy Committee of the Central Bank of Nigeria.
The CBN Governor, Godwin Emefiele, who disclosed this after the committee’s two-day meeting in Abuja on Thursday said, it also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5% and 30% respectively.
Announcing the committee’s decision, he said, “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5%.
“In summary, MPC voted as follows, one, retain MPR at 11.5%; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5%; and retain the Liquidity Ratio at 30%.”
He said MPC weighed the effect of tightening or loosening, noting the impact on output growth and employment among others.
Members felt that tightening would contract the current level of system liquidity and thus reduce demand pressure on the forex market, he said.