CBN retains key lending rates to manage recession

Ebun Francis| The Monetary Policy Committee on Tuesday retained key lending rates at 11.5%.

Nigeria’s Central Bank Governor, Godwin Emefiele, who made the disclosure at the end of MPC meeting in Abuja, said the move is part of efforts to boost the economy towards a sustainable recovery from the recession.

Emefiele said, “Members voted in line with the most pressing need towards reversing the recession and achieving medium-term macro-economic stability.

“In view of the fore-going, the committee decided by a unanimous vote to retain all parameters.”

“In summary, MPC voted 1, to retain MPR at 11.5%, (2), retain asymmetric corridor of +100 and -700 basis points around the MPR, (3) retain Cash Reserve Ratio at 27.5% and (4), retain liquidity ratio at 30%.”

The apex bank’s move comes days after Nigeria slipped into another recession after the economy shrank in the third quarter of this year, the second recession in a space of five years.

According to Emefiele, the recession was anticipated and measures had been put in place to manage its impact.