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Business News of Tuesday, 23 November 2021


CBN retains benchmark rate at 11.5%

Central Bank of Nigeria Central Bank of Nigeria

The Central Bank of Nigeria has retained the monetary policy rate at 11.5 per cent, with the asymmetric corridor of +100/-700 basis points around the MPR.

The CBN governor, Godwin Emefiele, announced this Tuesday after the Monetary Policy Committee meeting.

The apex bank chief said the MPC also retained other parameters, adding that its policy has begun to show results.

Mr Emefiele made reference to the 4.03% growth in real GDP and the 6th consecutive monthly decline in headline inflation. He also mentioned the continued moderation in the headline inflation, occasioned by a marginal decline in the food and core components of the inflation index.

The economic outlook shows a continuous rebound in growth, amid relative stability in the price of crude oil in the international market, the bank said. The bank also said it remained optimistic about inflation rates in the coming months.

The MPC also explained the need to remain cautious, calling on the fiscal authority to sustain interventions that would stimulate economic growth.

As parts of its decision, the Cash Reserve Ratio (CRR) was retained at 27.5%, while the liquidity ratio was also kept at 30%.