CBN retains interest rate at 14% despite receding inflation

The Central Bank of Nigeria said it agreed to keep interest rate at 14% despite a slight fall in inflation, first in the last 15 months.

As predicted by analysts, the CBN said the “the economy remained in recession with inflationary pressures continuing
unabated. These adverse external and domestic conditions continued to complicate the policy environment”.

The MPC committee said in consideration of the headwinds in the domestic economy and the uncertainties in the global
environment, decided by 9 out of 10 members to retain the MPR at 14.0 per cent alongside all other policy parameters.

One member voted to raise the MPR. In summary, the MPC decided to:
(i) Retain the MPR at 14 per cent;
(ii) Retain the CRR at 22.5 per cent; 17
(iii) Retain the Liquidity Ratio at 30.00 per cent; and
(iv) Retain the Asymmetric corridor at +200 and -500 basis points around the MPR

The future of the economy going forward is still uncertain as banks are not lending but rather rtrying hard to recoup toxic debt in the fears of preventing a takeover by the Asset Management Company of Nigeria.