The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has agreed to retain the monetary policy rate at 11.5 percent.
The CBN Governor, Godwin Emefiele, announced the committee’s decision on Tuesday at the end of a two-day meeting at the held in Abuja.
The committee also retained the liquidity ratio at 30 percent, cash reserve ratio (CRR) at 27.5 percent and asymmetric corridor of +100/-700 basis points around the MPR.
Emefiele noted that inflation, which slowed marginally to 18.1 percent in April, is driven by supply-side factors such as insecurity and poor infrastructure.
According to him, the MPC is optimistic that price-growth pressures will ease as domestic food supply improves.
Emefiele said, “The Committee noted that an expansionary stance of policy could transmit to reduced pricing of the loan portfolios of Deposit Money Banks and result, therefore, in cheaper credit to the real sector of the economy.
“On the converse, this expected transmission may be constrained by persisting security challenges and infrastructural deficits.”
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