CBN retains MPR at 11.5%, says Russia-Ukraine war poses risk to global economy

By BENJAMIN ORISEMEKE, Abuja –

The Central Bank of Nigeria (CBN) on Monday retained Monetary Policy Rates at 11.5 per cent.

CBN Governor, Godwin Emefiele during the MPC meeting, also said the apex bank would retained the asymmetric corridor at +100/–700 basis points around the MPR; Cash Reserve Ratio at 27.5 per cent; and Liquidity Ratio at 30.0 per cent.

Mr. Emefiele said three members voted for a 25 basis points increase, one member voted for a 50 basis points increase, while six members voted for the retention of the rates.

The Apex Bank Governor said increasing borrowing costs would do the Nigerian economy no good considering that it is yet to fully recover from the impact of Covid-19 pandemic.

The US last week raised its rates to curb the country’s growing inflation which is above Fed’s two per cent.

Nigeria’s inflation is currently at 15.7 per cent which is still above the single digit targeted by the CBN.

The Central Bank Governor Godwin Emefiele noted that the sanction against Russia would have a significant downside risk to the global economy.

The CBN boss also highlighted the gains of economic growth which were recorded as a result of lifting restrictions have been eroded by the Russian-Ukraine crisis.

Emefiele said the high energy prices experienced being experienced by the country as due to the Russian-Ukraine conflict.

He said the MPC noted that high energy prices have aggravated Nigeria’s inflation.