Again, CBN Leaves Interest Rate At 14%
So, the Monetary Policy Committee, MPC of the Central Bank of Nigeria, CBN concluded its meeting on Tuesday.
They rose from the meeting, deciding that main interest should be left at 14%. For your information, the main interest rate had been at 13% since July 2016.
But you see, the monetary policy authorities are torn between sluggish economic growth and increasing inflation.
Observers say they just decided to play it safe by retaining the interest rate at 14%.
Emefiele said three of the 10 members of the monetary policy committee who met voted for increase.
“There is need to maintain the current monetary policy stance and await a clearer understanding of the quantum and timing of liquidity injections into the economy before deciding on possible adjustments,” Emefiele said.
Recall that annual inflation rose in August over the previous year for the first time in a year and a half, driven by food prices.
Meanwhile, economic growth dipped to 1.50% in the second quarter, continuing a trend of slowing growth that began in the first quarter.