CBN sustains key interest rate at 11-year high

The Central Bank of Nigeria (CBN) monetary policy committee (MPC) on Tuesday, sustained all monetary policies parameters, in a bid to keep up the battle against inflation.

MPC said inflation was down, year-on-year, but the food index rose in February from figures recorded in January, mounting pressure on consumers.

Godwin Emefiele, governor of the bank, announced that the committee decided to keep key interest rate at 14 percent, while cash reserve ratio (CRR) and liquidity ratio were held at 22.5 percent and 30 percent respectively.

He said the nine of 10 members present at the meeting decided unanimously to keep the asymmetric corridor at +200 and +500 basis points.

It also asked that the federal government carry out a speedy implementation of the Economic Recovery and Growth Plan.

The monetary policy committee (MPC) concluded that the era of high oil prices is gone, and it has become more imperative for government to diversify the economy away from oil.