CBN Retains Benchmark Lending Rate at 13.5%

The Monetary Policy Committee(MPC) of the Central Bank of Nigeria(CBN), on Tuesday, unanimously retained the benchmark lending rate at 13.5%.

The Committee decided unanimously by a vote of all members present to retain monetary policy rate at 13.5% and hold all other policy parameters constant.

The CBN Governor Godwin Emefiele who said these while briefing newsmen in Abuja after the MPC meeting, noted that the decision was informed by the conviction of members that key macroeconomic indicators are trending in the right direction.

He stated that the MPC unanimously voted to; Retain MPR at 13.5%; Asymmetric corridor at +200/-500 basis point around the MPR; CRR at 22.5 %; and Liquidity ratio at 30%.

“On the decision to hold, the committee observed that since interest rate is trending downward, it is safer to await the full impact of this policy actions on the economy before the review of the position of Monetary policy”, he said.

Speaking on the African Continental Free Trade Agreement (AfCFTA), Emefiele revealed that the Committee urged the Federal Government to put measures in place to aid the economy in realizing the benefits and full potential of that agreement.

While noting the positive development towards the creation of a common currency in West Africa by 2020, the Committee commended the Federal Government and the CBN for pushing forward the initiative and enjoined the Bank to ensure that Nigeria is properly positioned to maximize the benefits of monetary integration.

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