CBN Holds Benchmark Interest Rate At 12.5%

The monetary policy committee of the Central Bank of Nigeria (CBN) has announced its decision to retain the monetary policy rate (MPR) at 12.5 percent.

Godwin Emefiele, governor of the apex bank, announced the committee’s decision on Thursday at the end of the committee’s meeting.

Cash reserve ratio (CRR) was retained at 27.5%, liquidity ratio at 30% and asymmetric corridor around the MPR at +200/-500 basis points.

The CBN governor explained that tightening would increase the cost of production which would translate to higher prices of goods and services and harder economic conditions for Nigerians.

According to Emefiele, eight members voted in favour of holding rates while two members voted in favour of reducing MPR.