Despite Rising Inflation, CBN Retains Benchmark Lending Rate At 11.5%

Despite the rising inflation in the country, the Monetary Policy Committee of the Central Bank of Nigeria has retained interest rate at 11.5 per cent following low consumer spending.

The decision was announced on Tuesday by the apex bank governor, Godwin Emefiele, during the  278th meeting held in Abuja.

The CBN retained it  unconventional monetary policy  despite the worsening inflation which rose to 17.33 per cent in February 2021, from  the 16.43 per cent in January.

The CBN had retained interest rate at 11.5 per cent following low consumer spending during the 277th meeting.

In September 2020, the authorities unexpectedly cut the monetary policy rate by 100 basis points to 11.5 per cent from the previously held rate which was 12.5 per cent.

Emefiele noted inflationary pressure would moderate in the short to medium terms following successful administration of the Covid-19 vaccines.

He said the committee was faced with tough decisions of moderating the rising inflation and stimulate output growth.