CBN Retains11.5% Monetary Policy Rate As Supply Disruptions Drive Inflation

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has  kept the Monetary Policy Rate (MPR) at 11.5%.

This was disclosed by the Governor, Mr Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday. Other parameters such as Cash Reserve Ratio (CRR), Liquidity Ratio, and Asymmetric Corridor remain unchanged.

“In summary, the MPC voted to retain the MPR at 11.5 per cent; retain the Asymmetric Corridor of +100/-700 basis points around the MPR; retain the Cash Reserve Ratio at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent,” he said.

The Committee stated that inflation continued to be driven by supply-side disruptions arising from the COVID-19 pandemic and other legacy factors. Key amongst these are the security challenges in parts of the country the increase in food prices and the recent hike in the pump price of PMS and electricity tariff.