CBN Treads Water, Leaves Key Rate Unchanged
By Sahabi Abdul
The Central Bank of Nigeria left its benchmark rate unchanged at 11.5 percent at the last meeting of its Monetary Policy Committee for this year, treading water while waiting for the effects of previous policy steps to kick in.
The committee members also voted unanimously to retain other policy parameters, including the current cash reserve and liquidity ratios for banks, according the central bank Governor Godwin Emefiele.
“The existing monetary stance should be allowed to continue for a little longer for consolidation to achieve the MPC mandate of conducive growth,” Emefiele told reporters at the end of the meeting.
The Central Bank governor expressed concern that Nigeria’s recovery from the economic woes arising from the coronavirus pandemic may be thwarted by spiralling insecurity across the country.
Many farming communities in predominantly agricultural regions have been hit by either jihadist violence, clashes over grazing land, banditry or a combination of all, adding to inflationary pressures.