The Central Bank of Nigeria (CBN) monetary policy committee (MPC) on Tuesday voted to retain the monetary policy rate (MPR) at 11.5 percent.
The apex bank’s governor, Godwin Emefiele, announced the committee’s decision at the end of its two-day meeting.
The committee also retained the Liquidity Ratio at 30 percent and Cash Reserve Ratio (CRR) at 27.5 percent.
Emefiele described a statement by Fitch that sustained use of direct financing from the CBN to fund budget deficit could raise risks to macroeconomic instability, as “unfair and unfortunate to hold such views”.
The committee also cautioned against another total lock down of the economy, noting that such may reverse the gains of economic stimulus achieved in 2020.