CBN retains 14% monetary policy rate, says economy still in recession

The Central Bank of Nigeria, CBN, on Tuesday allayed fears in some quarters when it unanimously resolved to retain all monetary rates.

At the end of the Monetary Policy Committee meeting, the monetary policy rate for banks and businesses was retained at 14 per cent, while Cash Reserve Ratio (CRR) was left at 22.5 per cent and liquidity ratio at 30 per cent.

The CRR sets the specified minimum fraction of customers’ total deposits commercial banks can hold as reserves either in cash or deposits with the Central Bank.

At the post-MPC meeting briefing, the CBN governor, Godwin Emefiele, said in Abuja that the liquidity ratio was kept within the symmetric window of +200 and -500 basis points around the MPR.

ThenewsGuru.com reports that the Central Bank Governor affirmed that the economy was still in recession. He however advised the government to fast track efforts to settle domestic indebtedness to states to help revamp the economy.

He said part of the efforts should include attempts to revamp some moribund industries that helped create jobs in the past, to create employment opportunities for young university graduates.