CBN retains interest rate at 11.5%

The Central Bank of Nigeria (CBN) has retained interest rates at 11.5 percent, as the country struggles with a high inflation rate.

The CBN said on Monday during the Monetary Policy Meeting in Abuja that pushing borrowing costs to restrictive levels will not favor Nigeria’s economic recovery from the Covid-19 pandemic.

The US last week raised its rates to curb the country’s growing inflation which is above Fed’s two percent.

Nigeria’s inflation is currently at 15.7 percent which is still above the single-digit targeted by the CBN.

The Central Bank Governor Godwin Emefiele said the sanction against Russia would have significant downside risk to the global economy.

Emefiele also highlighted that the gains of economic growth which were recorded as a result of lifting restrictions have been eroded by the Russian-Ukraine crisis.

He blamed the high energy prices experienced by the country on the Russian-Ukraine conflict.

Emefiele said the MPC noted that high energy prices have aggravated Nigeria’s inflation.

He also said that the poor power supply has also compounded the country’s inflationary pressure.

Based on these considerations, Emefiele said the MPC retained the Monetary Policy Rate at 11.5 percent; asymmetric corridor at +100/–700 basis points around the MPR; Cash Reserve Ratio at 27.5 percent; and Liquidity Ratio at 30.0 percent.

Emefiele said three members voted for a 25 basis points increase, one member voted for a 50 basis points increase, and six members voted for the retention of the rates.

Idoko Dennis

Idoko Dennis is a creative videographer/drone pilot and sport writer. He heads the sport desk and deputizes the head of Idoma TV

Recent Posts

Tinubu makes fresh appointment

President Bola Ahmed Tinubu has appointed Abdulrazak Yusuf Tukur as the National Commissioner for the…

1 hour ago

AGF completes legal steps to free minors detained in #EndBadGovernance protests

The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has completed…

1 hour ago

I won’t attack Peter Obi, but truth must prevail – Doyin Okupe

Former presidential spokesperson Doyin Okupe has stated he would never disparage Peter Obi, the 2023…

2 hours ago

Content creation is so lucrative, I could buy four Lamborghinis – Josh2Funny

Nigerian skit maker Chibuike Josh Alfred, better known as Josh2Funny, has stated the lucrative nature…

2 hours ago

Petrol price hike: Focus on competition not monopolistic control – PETROAN challenges Dangote

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused Dangote Refinery of…

2 hours ago

Black Market Dollar to Naira Exchange Rate Today 5th November 2024

The black market dollar to naira exchange rate for today, 5th November 2024, can be…

2 hours ago