BREAKING: MPC retains Monetary Policy Rate at 13.5 percent

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is retaining the Monetary Policy Rate at 13.5 percent, the apex bank said on Tuesday

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, disclosed this decision during a press conference at the end of a two-day MPC meeting held on Tuesday at the apex bank’s headquarters in Abuja.

He explained that the committee unanimously voted to retain the MPR, after the rates were reduced from 14 percent to 13.5 percent in March 2019, the first time the MPR was reduced since July 2016.

“The committee decided unanimously by a vote of all members present to retain MPC at 13.5 percent and hold all other key parameters constant.

“The decision was informed by the conviction of members that key macro-economic indicators are trending in the right direction and because of the lag in the effects of policy actions on output.”

Mr Emefiele explained that the committee decided to hold the Cash Reserves Ratio at 22.5 percent and retain liquidity ratio at 30 percent.

“The MPC voted to retain the asymmetric corridor at +200 and -500 basis point around the MPR, Retain the CRR at 22.5 percent and retain liquidity ratio at 30 percent.”