By Concise News Correspondents
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has retained a 14% Monetary Policy Rate at the end of its first meeting for 2017.
The rate was announced by the CBN Governor, Godwin Emefiele, at the end of the meeting held on Tuesday in Abuja, Nigeria’s capital.
The liquidity ratio and the Cash Reserve Ratio (CRR) were also unchanged.
While the liquidity ratio remains 30% the CRR is 22.50%.
It also retained the asymmetric corridor at +200 and -500 basis points around the MPR.
Emefiele said the committee’s decision followed a broad consideration of Nigeria’s economic outlook.
“The Committee in consideration of the headwinds in the domestic economies and uncertainties in the global environment, decided by a unanimous vote to retain the MPR a 14% alongside all other policy parameters,” he stated.
At the end of the meeting, this was what the CBN governor told reporters: “With output growth improving sluggishly, the outlook for 2017 remains unchanged, owing to persisting uncertainties on commodity prices and volatility in financial market as well as slowing demand in the advanced economies and emerging market.
“The MPC welcomed the modest increase in oil prices following the last OPEC decision to cut output and noted the increase in the policy rate of the United States FED in December 2016 and the potential implications of that decision on international interest rates and capital flows.
“While noting the materiality of the cut in oil output, the committee cautioned that the effect could rapidly wane giving a likelihood of a supply glut from non-OPEC members, low level of global economic activity and weak growth”.