The Central Bank of Nigeria has retained the monetary policy rate at 11.5 per cent.
The CBN governor, Mr. Godwin Emefiele, who announced this in Abuja on Tuesday after a two-day monthly Monetary Policy Committee meeting, said the committee also resolved to maintain the asymmetric corridor of +100/-700 basis points around the MPR.
The MPR is the rate at which the CBN lends to commercial banks and often determines the cost of borrowing in the economy.
The bank also retained the cash reserve ratio at 27.5 per cent and liquidity ratio at 30 per cent.
He further said the MPC voted to retain the Cash Reserve Ratio (CRR) at 27.5 per cent as well as the liquidity ratio at 30 per cent.
The move, he said, is expected to allow further economic growth, despite four-year high inflation, after the country exited recession last year.
The governor added that economic recovery remains fragile, despite the GDP growth and urged the government to consolidate efforts on addressing the security and infrastructural challenges militating against growth.
“In the view of the MPC, although the economy has recovered from recession, the recovery was very fragile given that the GDP of 0.51% was still far below population growth rate.
“The committee therefore was of the view that there is a strong need to consolidate on all administrative measures currently being taken to spur output growth.
“In the view of the MPC, although the economy has recovered from recession, the recovery was very fragile given that the GDP of 0.51% was still far below population growth rate,” Emefiele said.
