CBN Policy Committee Keeps Benchmark Interest Rate at 27%
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to keep the benchmark interest rate at 27% after the two-day meeting closed on Tuesday.
Against Broadstreet analysts’ expectations, the monetary authority brushed off disinflation as a key reason to axe the interest rate, keeping the private sector guessing about its dovish signal.
The authority cut the policy rate by 50 basis points in Oct after years of a hawkish pose. The committee vote to retain the Monetary Policy Rate at 27% and adjust the asymmetric corridor around the MPR to +50bps/-450bps compared with +250 bps/-250 bps in the Sept action.
The CBN committee also retains cash reserve ratios for Deposit Money Banks, Merchant Banks and non-Treasury Single Account (TSA) public sector deposits at 45.0%, 16.0% and 75.0%, respectively. It also retained liquidity rate at 30.0%. #CBN Policy Committee Keeps Benchmark Interest Rate at 27%
