‎JUST IN: CBN Retains Interest Rate at 26.5% ‎

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‎The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), otherwise known as the interest rate, at 26.5 per cent.

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‎Speaking at the end of the 305th Monetary Policy Committee (MPC) of meeting in Abuja on Wednesday, the CBN Governor, Olayemi Cardoso, said the committee also retained the asymmetric corridor around the MPR at +500/-100 basis points.

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‎Cardoso said that the committee retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks, while the liquidity ratio was maintained at 30 per cent. The committee also retained the CRR for non-Treasury Single Account (non-TSA) public sector deposits at 75 per cent.

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‎Explaining the rationale behind the decision, Cardoso said the committee’s decision was based on a comprehensive assessment of risks to both the global and domestic economic outlook.

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‎“Although inflation increased in the last two months due to global shocks, the MPC recognises its transitory nature and is confident that the prevailing macroeconomic environment will support a return to disinflation,” he said.

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‎Detail later…