CBN retains benchmark lending rate at 13.5%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday left the Monetary Policy Rate unchanged at 13.5 per cent.

The CBN Governor, Mr Godwin Emefiele, announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.

He explained that all the 11 members that attended the meeting unanimously agreed to hold the monetary policy stance.

The governor said apart from the MPR that was retained at 13.5 per cent, the committee decided to hold the Cash Reserves Ratio at 22.5 per cent.

Also retained are the Liquidity Ratio, which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.

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.

 

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