Again CBN MPC retains policy rate at 13.5 percent

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

The apex bank governor, Godwin Emefiele, made the disclosure at a press conference at the end of a two-day MPC meeting at the apex in Abuja.

According to Emefiele, the committee unanimously voted to retain the MPR, after the rates were reduced from 14 percent to 13.5 percent in March 2019, the first time the MPR was reduced since July 2016.

He further stated the committee reviewed the upside and downside options to either tighten, hold or loosen and decided to hold policies at its current position.

Emefiele said, “The MPC reviewed the upside and the downsides of the options to tighten, hold or to loosen.

“The committee felt that there would be more gains in the shortfall to medium term in holding policy at its current position. The committee decided by unanimous votes to retain the policy rate at 13.5 percent and to hold all other policy parameters constant.

“The MPC voted to retain MPR at 13.5%, retain the asymmetric corridor at +200 and -500 basis point around the MPR, retain the CRR at 22.5% and retain the liquidity ratio at 30 percent.”

The apex bank chief further revealed the committee advised the federal government to reconsider the oil price benchmark of $57 for the 2020 budget oil given that oil prices will remain relatively weak in the nearest future.