CBN Retains Benchmark Interest Rates Despite Recession

The meeting of the Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, which began on Monday, has ended today (Tuesday), with all key indicators retained.

It resolved to maintain the Monetary Policy Rate, MPR, at 14 per cent, the Cash Reserve Ratio, CRR, at 22.50 per cent and the Liquidity Ratio at 30 per cent.

The CBN Governor, Mr. Godwin Emefiele, who briefed newsmen on the outcome of the meeting of the ten member committee, explained that holding all the rates is best for the economy at the moment.

The retention of the benchmark interest rates is happening at a time the country is experiencing deepening recession coupled with worsening inflation.

Just yesterday, the National Bureau of Statistics, NBS, was reported as saying the nation’s Gross Domestic Product, GDP, has shrunk by 2.24 percent in the third quarter of 2016, falling deeper than what was recorded in the first and second quarter of 2016