MPC retains interest rate at 11.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to retain the benchmark interest rate at 11.5%, whilst keeping all other monetary parameters constant.

Governor of the CBN, Mr. Godwin Emefiele disclosed this in a communique issued at the end of the first monetary policy committee meeting of the year, on Tuesday 25th January 2022.

While MPR was retained at 11.50%, asymmetric corridor of +100/-700 basis points around the MPR was retained and CRR retained at 27.5%

Liquidity Ratio was also kept at 30%

The MPC observed that inflation in most developed and emerging economies remain high driven by the persistent exchange rate fluctuations and supply bottlenecks.

The committee noted that the increase in the country’s inflation rate in December 2021 is attributable to increased demand during the yuletide and hence suggests that the uptick in the numbers could be a temporary development. The members also believe that inflation will moderate further going into the new year driven by the significant interventions in the agricultural sector.