The monetary policy committee of the Central Bank of Nigeria (CBN) has voted to retain the monetary policy rate (MPR), which measures interest rate, at 11.5 percent.
Throughout 2021, the committee also held MPR constant.
The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on the MPR.
Addressing journalists on Tuesday after the committee’s first meeting for the year at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said the committee members unanimously retained key rates.
He said the committee voted to maintain the key lending rate at 11.5 percent, with the asymmetric corridor of +100 and -700 basis points around the MPR and liquidity ratio at 30 percent.
The committee noted that the increase in the country’s inflation rate in December 2021 is attributable to increased demand during the yuletide and hence suggests that the uptick in the numbers could be a temporary development.
The members also believe that inflation will moderate further going into the New Year driven by the significant interventions in the agricultural sector.
The MPC highlighted that the Nigerian economy is expected to continue with a positive growth following the impressive growth recorded in the third quarter of 2021, reflecting continuous recovery from the recession.