Central Bank Keeps Benchmark Interest Rate at 11.5%
Godwin Emefiele, Governor at Central Bank of Nigeria

Central Bank Keeps Benchmark Interest Rate at 11.5%

The Central Bank of Nigeria (CBN) monetary policy committee keeps the benchmark lending rate at 11.5% in unanimous votes after a two–day deliberation.

MPC keeps monetary policy rate at 11.50% for the firth meetings with asymmetric corridor remained at to +100/-700 basis points. Also, the cash reserve ratio was held at 27.50% and the liquidity ratio was retained at 30.00%.

Analysts had projected that the nose-diving inflation rate in the country provides an impetus for the monetary author to keep rates in July meetings.

In coming to terms with their decisions, the Committee reviewed the developments in the global and domestic environment in the half-year of 2021, particularly the improved vaccination, which has led to economic growth in many countries.

The committee also reviewed the global and domestic financial environments as well as the outlook and possible risks in the second half of 2021. The nine members of the committee were in attendance and they considered the direction of all the policies.

Read Also: MPC Will Keep Policy Rates to Drive GDP Rebound Further

CBN policy committee expressed concerns about the broad level of increased security challenges in the country, which has undermined farmland activities and made the business environment more hostile.

Apart from that, members expressed concerns about the broad level of increased security challenges in the country, which has undermined farmland activities and made the business environment more hostile.

They believed a strong need for the monetary and fiscal authorities to continue to consolidate administrative measures to spur economic growth.

In addition, MPC sees a strong need for the monetary and fiscal authorities to continue to consolidate administrative measures to spur economic growth.

Like the May meeting, where there was uniformity in the voting pattern, a unanimous decision was reached among the Committee members. Then, monetary policy authority maintains the status quo on all key parameters as a way not to rock the boat.

In their separate reactions, analysts believe the outcome of the meeting is consistent with market expectation, given that the Committee has guided that its short-term objective is to drive a rebound in economic activities despite the stubbornly high inflation and pressures on the local currency.

Central Bank Keeps Benchmark Interest Rate at 11.5%