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updated 10:20 AM UTC, Dec 13, 2023

Central Bank Of Nigeria Retain Monetary Policy Rate At 14%

Unic Press UK: The Monetary Policy Committee of the Central Bank of Nigeria has retained its lending rate [Monetary Policy Rate (MPR)] at 14%, the Central Bank governor said in a statement on Tuesday, the 25th July. The decision of the Monetary Policy Committee was reached over two days’ of deliberations that ended on Tuesday.

Central Bank of Nigeria (CBN) communique no 114 of the monetary policy committee meeting of 24th and 25th July, 2017 that was signed by the CBN governor Godwin Emefiele, the committee agreed as follows:

  • Retain the MPR at 14 per cent
  • Retain the CRR at 22.5 per cent
  • Retain the Liquidity Ratio at 30.00 per cent
  • Retain the Asymmetric corridor at +200 and -500 basis points around the MPR.

In making its decision, the monetary policy committee took into consideration a range of factors, including:

External developments

  • IMF projected global output growth of 3.5% in 2017 from 3.1% in 2016;
  • Economic outlook of emerging economies, particularly South Africa, Russia and Brazil;
  • Brexit that seems to have provoked a slower than expected growth in the United Kingdom; and several other factors.

Domestic output developments

  • National Bureau of Statistics (NBS) records, which illustrates that “the contraction in the economy moderated to 0.52 per cent in Q1 2017 from 1.30 per cent in Q4 2016”;
  • The Purchasing Managers Index (PMI) for manufacturing and non-manufacturing activities, which peaked at  52.9 and 54.2 index points in May and June 2017;
  • The Composite Index of Economic Activities (CIEA) that rose from 55.85 to 59.50 index points between April and June 2017;
  • 0.72 per cent growth in non-oil real GDP in Q1 2017;
  • Balance of Payments (BOP) position; and so on.
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