" /> MPC Keeps Rates Unchanged for 2 years | Hallmarknews
Published On: Tue, Jul 24th, 2018

MPC Keeps Rates Unchanged for 2 years

    Godwin Emefiele, CBN Governor

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained benchmark interest rate at 14 per cent with the asymmetric corridor at +200bps and -500bps around the MPR at end of its two-day meeting in Abuja on Tuesday.
The MPC has pegged the Monetary Policy Rate (MPR) simply known as interest rate since July 2016.
Experts have projected that the MPC would maintain the status quo in the face of expected increase in money supply that may accelerate inflation rate, due to political spending as the country approaches the 2019 general elections.
Election spending would likely cause inflation rate to reverse upward from July, said Johnson Chukwu, CEO, Cowry Assets Management Ltd. This was anticipation that spurred the Committee to retain rates.
The Nigerian Bureau of Statistics’s (NBS) latest data released on Monday showed that the country’s inflation slowed to 11.23 per cent year-on-year in June from 11.61 in the previous month.
The MPC also left the Cash Reserve Ratio (CRR) at 22.50 per cent and the Liquidity Ratio at 30.00 per cent.
The private sector would continue to grapple with limited access to funds as commercial lenders keep the risk appetite low in the face of current high non-performing loans in the banking industry.

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