CBN Holds Benchmark Interest Rate At 11.5%, Says Economic Recovery Still Fragile

LThe Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again voted to retain the monetary policy rate at 11.5 percent.

The announcement was made by the CBN governor, Godwin Emefiele during a press briefing at the CBN headquarters on Tuesday.

Emefiele speaking further on the decision of the MPC at the end of the two-day rates decision meeting said the committee voted to leave at MPR at 11.5 per cent, Cash Reserve Ratio at 27.5 percent, and Liquidity Ratio at 30 percent.

He explained that the move is expected to allow further economic growth, after the country exited recession in the fourth quarter of 2020, amid rising inflation.

The MPC also lamented the effect of insecurity on the nation’s economy and called on the Federal Government to handle insecurity immediately to successfully tackle inflation.

On the effect of the Coronavirus pandemic, the MPC advised against another total lockdown stating that this will reverse most of the economic gains made in the country since the gradual reopening of the economy.

The MPC also noted that at least 70% of Nigeria’s population must be vaccinated if the country means to achieve economic recovery.

Responding to questions on the CBN ban on cryptocurrency transactions in Nigerian banks, the CBN governor insisted that the encrypted nature of cryptocurrency transactions makes it hard for fraud to be investigated and criminals apprehended.

According to Emefiele, no responsible Central Bank will support such transactions.