CBN chief Godwin Emefiele

Central Bank of Nigeria’s Monetary Policy Committee on Thursday retained the monetary policy rate at 14%.

The apex bank’s governor, Godwin Emefiele, while reading the committee’s decision to newsmen at the bank’s headquarters in Abuja said the committee thought that the drop in inflation was seasonal and not sustainable.

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He explained that all 11 members of the committee voted to hold rates.

The committee also retained the cash reserves ratio and liquidity ratio at 22.5% and 30% respectively.

He said, “Committee noted the benign performance of inflation, a drop in headline inflation was driven by food inflation which moderated, core inflation, however, came up marginally.

“The committee noted that the moderation in inflation was largely seasonally driven and was therefore unsustainable as prices were expected to pick towards the end of the year.

“The MPC observed that the near-time upside risk to inflation remains.”

The committee, the CBN governor said, advised that the Anchors Borrower Programme be extended to fish and palm oil production.