The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has retained its key benchmark interest rate at 14%, alongside other parameters.
At the end of the two-day MPC meeting in Abuja, the CBN Governor, Mr Godwin Emefiele, explained that the committee expects the speedy implementation of the recently unveiled economic recovery growth plan by the Federal Government.
According to Mr Emefiele, nine out of 10 members voted to maintain status quo on all rates, as loosening rates at this time will among other thing exacerbate inflation.
He commended the recent Foreign Exchange (FX) policies, saying “this has reduced pressure at the parallel market, as constant FX intervention by the Apex Bank has seen the Naira trading at 445 Naira to a dollar”.
Meanwhile, analysts agree that FX remains a major issue and generally believe patience is needed to allow monetary policies fully manifest.