CBN MPC Retains Interest Rate At 13.5%

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN), on Tuesday, retained the monetary policy rate (MPR) at 13.5%.

The monetary policy committee of the CBN made this known while briefing journalists shortly after the MPC meeting that held on Tuesday at the apex bank’s headquarters in Abuja, the nation’s capital.

The CBN governor, Godwin Emefiele said only nine members of the committee were in support of retaining rates to understand the trend of growth.

“Data on the domestic economy suggests some fragility in output growth during the second quarter of 2019 with improved output for the rest of the year.

“Committee enjoined the federal government to build fiscal buffers through a more realistic benchmark of oil price for the federal budget

“Output growth remains well below the economy’s potential indicating the existence of spare capacity for non-inflationary growth, an opportunity which should be explored through increased credit delivery to the private sector,” he said.

The committee also retained the cash reserves ratio at 22.5 percent, liquidity ratio at 30 per cent; and the asymmetric window which was at +200 and -500 basis points around the MPR.