CBN Retains Interest Rate At 14%

In line with general expectations, the Central Bank of Nigeria (CBN) on Tuesday retained its benchmark interest rate at 14 percent, the governor of the bank said at the end of MPC meeting.
Godwin Emefiele told newsmen in Abuja, the majority of members of the rate-setting Monetary Policy Committee (MPC) decided to hold the rate at the same level it has been since last two years to further consolidate the gains of the past decision on the economy.
“Loosening at this time would exacerbate inflationary pressures and worsen the exchange rate and inflationary rate condition,” said Emefiele.
He said six out of the seven members present at the meeting voted to retain the rate at 14 percent while only one member decent and voted for a rate cut.
A member of the MPC Dahiru Balam had said in his note at the last meeting the clamour for low-interest rate cannot happen in the near term due to the high level of inflation and rising costs in the economy.
“The clamour for low-Interest rate cannot happen now because of the high level of inflation and rising operational costs in the economy,” Balama said at the last MPC meeting.
Also, fourteen of 15 economists polled by Reuters last week predicted rates would stay on hold while one forecast a 200 basis point cut.

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