CBN retains monetary rate at 14%, CRR at 22.5%

By
Ngozi Amuche
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The Central Bank of Nigeria on Wednesday announced that it had retained the key monetary rates at current level as some observers had anticipated.

This announcement was made after the end of the Monetary Policy Committee meeting held in Abuja, the first in 2018.

Governor of the CBN, Mr. Godwin Emefiele, said the committee, after its deliberations, unanimously agreed to hold the Monetary Policy Rate at 14 percent, and that the Cash Reserve Ratio is left at 22.5 per cent, while the Liquidity Ratio is retained at 30 per cent.

Emefiele had in January, this year, predicted that the MPC may start cutting interest rates in the first half of 2018, as inflation eases.
“Once inflation gets to low double digits, and high single digit happens, then it should be easy for the MPC to begin to look at easing. I want to think that between the end of the first and second quarter, we should begin to see easing,”

He explained that increases in the price and shipment of oil, Nigeria’s biggest foreign-currency earner, had improved investors’ confidence, meaning that the CBN could build up its reserves to $60 billion in the next 12 to 18 months, from the current level of $40 billion.

“Things are looking up. No one ever thought the price of crude would hit $70 in such a short period of time,” he said.