CBN Retains Monetary Policy Rates At 11.5%

May 28, 2021

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again voted to retain the monetary policy rate at 11.5 percent.

CBN governor, Godwin Emefiele made the announcement during a press briefing at the CBN headquarters on Tuesday.

Emefiele speaking further on the decision of the MPC at the end of the two-day rates decision meeting said the

committee voted to leave the MPR at 11.5 per cent, Cash Reserve Ratio at 27.5 percent, and Liquidity Ratio at 30 percent.

He explained that they expect the move to allow further economic growth, after the country exited

recession in the fourth quarter of 2020, amid rising inflation.

The MPC also lamented the effect of insecurity on the nation’s economy and called on the

Federal Government to handle insecurity immediately to successfully tackle inflation.

On the effect of the Coronavirus pandemic, the MPC advised against another total lockdown stating that this will

reverse most of the economic gains made in the country since the gradual reopening of the economy.

The MPC also noted that at least 70% of Nigeria’s population must be vaccinated if the country means to achieve economic recovery.

Responding to questions on the CBN ban on cryptocurrency transactions in Nigerian banks, the CBN governor insisted

that the encrypted nature of cryptocurrency transactions makes it hard for fraud to be investigated and criminals apprehended.

According to Emefiele, no responsible Central Bank will support such transactions.

By Victoria E.I

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