The Central Bank of Nigeria has kept its key interest rate at 14 per cent, in line with market expectations as the country fights off future recession threats.
Per Second News gathered that the rate is to counter inflationary risk and introduce an initiative aimed at increasing liquidity to businesses, according to monetary policy committee meeting being held now in Abuja.
The Monetary Policy Committee in 2016 hiked the Monetary Policy Rate (MPR) by 200 basis points from 12 per cent to 14 per cent to combat inflation and stimulate growth.
The Central Bank Governor Godwin Emefiele told reporters on Tuesday in the capital, Abuja that the bank was retaining the Cash Reserve Ratio (CRR) at 22.5% in a seven to three votes towards increasing the CRR to 25% and will retain the liquidity ration at 30%.
Nigeria is keeping a tight monetary stance to stem the naira from further decline, as the country is slowly recovering from recession which it slipped to in 2016.
Emefiele said he is confident that Nigeria’s growth rate is on track. It will be recalled tghat the International Monetary Fund (IMF) in July this year upgraded its growth rate forecast for Nigeria’s Gross Domestic Product (GDP) to 2.3% for 2019, while retaining 2.1 percent for 2018, citing improved crude oil prices.
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