Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the benchmark rate at 13.5%.
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.
Mr Emefiele said that the committee reviewed the upside and downside options to either tighten, hold or loosen and decided to hold policies at its current position.
“The MPC reviewed the upside and the downsides of the options to tighten, hold or to loosen.
“The committee felt that there would be more gains in the shortfall to medium term in holding policy at its current position. The committee decided by unanimous votes to retain the policy rate at 13.5 percent and to hold all other policy parameters constant.
“The MPC voted to retain MPR at 13.5%, retain the asymmetric corridor at +200 and -500 basis point around the MPR, retain the CRR at 22.5% and retain the liquidity ratio at 30 percent.”
He added that the committee suggested that the Federal Government should reconsider its 2020 budget oil price benchmark of $57 per barrel, due to the possibility that prices will remain relatively weak in the nearest future.