Nigeria maintains economic momentum, retains monetary policy rate at 14%
London, April, 4, 2018 (AltAfrika)-The Monetary Policy Committee of the Central Bank of Nigeria on Wednesday left the Monetary Policy Rate unchanged at 14 per cent
.Also retained are the Liquidity Ratio which was left at 30 per cent, the Asymmetric Window which was left at +200 as well as -500 basis points around the MPR.
He explained that nine members of the committee unanimously agreed to maintain the current monetary policy stance.
He said apart from the MPR which was retained at 14 per cent, the committee also retained the Cash Reserves Ratio at 22.5 per cent.
This is the first meeting of the committee in 2018 after many months in limbo
Inflation has been steadily coming down in West Africa’s largest economy, opening the door for easing monetary policy, though there are still concerns about foreign-exchange pressures.
“We think that rates will be cut later this year but they’ll wait for inflation to ease a little bit before moving.”
Since its last meeting in November, several new members have joined the committee, and they were finally approved by the senate at the end of March.
T he senate refused to confirm the committee members in protest of President Muhammadu Buhari’s earlier appointment of anti-graft head Ibrahim Magu.
After being deadlocked for months, the senate finally “decided to do the right thing”, according to a senate source, and confirmed the new members.
Nigeria is recovering from its worst recession in 25 years after the crash in global oil prices in 2014.
As a result of increased oil revenue, Nigeria’s economy expanded 0.8 per cent in 2017, but growth in non-oil sectors remains tepid.