The Central Bank of Nigeria at its first Monetary Policy Committee meeting in 2018 unanimously voted to retain the record-high benchmark interest rate at 14 percent.

This is the first time Aishah Ahmad and Edward Adamu, the recently confirmed deputy governors of CBN; and two other members confirmed by the senate Adeola Adekinju and Aliyu Sanusi are voting as part of the MPC.

The decision to raise the key interest rate to 14 percent was made in July 2016 and has been kept at the same level since then. At 14 percent, Nigeria’s MPR is currently at its highest in at least 12 years.

Governor of the apex bank, Godwin Emefiele said the decision to retain the policy rates was geared at fighting inflation and strengthening the economic outlook for Nigeria’s growth. “Committee was of the view that further tightening would strengthen the impact of monetary policy on inflation with complementary positive effect on capital flows and exchange rate stability,” he said.
“Nevertheless, it could potentially dampen the positive outlook for growth and financial stability. Committee is of the view that loosening will strengthen the outlook for growth by stimulating domestic aggregate demand through reduced cost of borrowing.

“This may, however, lead to a rise in consumer prices, generating exchange rate pressures on the currency in the process. The committee believes that key variables have continued to evolve in line with the current stance of macro-economic policy and should be allowed more time to fully manifest.

“In consideration of the foregoing, committee decided unanimously by a vote of all members present to retain monetary policy rate (MPR) at 14 percent alongside all other policy parameters.

“Consequently, MPC voted unanimously to retain MPR at 14 percent, CRR (cash reserve ratio) at 22.5 percent, liquidity ratio at 30 percent, and asymmetric corridor at +200 basis points and -500 basis points around the MPR.”

Emefiele said the new members did not decide to go with the previously-held decisions of the CBN because they are “a strong set of people, who understand their responsibilities and have decided to hold positions for now”.

The MPC meeting which was originally scheduled for January 22 and January 23 is the apex bank’s first official meeting in 2018, following senate’s confirmation of the presidential appointees.

http://www.akelicious.net/2018/04/cbn-retains-benchmark-interest-rate-at.html

Not bad

I dedicate this FTC to:

#AmbodeMustGo!!!
He and his little, arrogant, priest-sacking wife.
Little arrogant people.

I also dedicate this FTC to:
#Atiku Is Corrupt!!
US: Atiku Abubakar In $40 Million Money-Laundering
Feb 3, 2010 · A United States Senate report has accused Atiku Abubakar, Nigeria’s former Vice-President, of laundering over $40 million in suspicious funds into the United States between 2000 and 2008. And his partner in the lucrative effort was Jennifer Douglas, his fourth wife.

I also dedicate this FTC to:
#Buhari Is Useless

The joke is on you OP Most nairalanders do not understand what that means or implies

Horrible for businesses

Mtcheeeew, whats now the essence of the long awaited meeting

Somebody should please explain to me(us) in laymans language

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Hmm, not bad

Na wah o, at 8% here we Dey complain say it’s too high.Someone cannot borrow in peace again?

Not bad. Good news for Treadury bills investors.

Why not 4%


Now I know why Muslims want sharia law ..
now I know why Nigeria is not progressing ...
Now I know many company will collapse ...
Now I know many graduates can't be investor



A reasonable Government will do all possible means to boost the economy of its nation .. but here in my Country things are getting worse / Government.....

I believe one day it shall be well with Nigeria

datola:
Not bad. Good news for Treadury bills investors.

How?

hmm

I'd call this stupid! The economy is down. Reduce your lending rate to enable business get access to capital and boost production.

If businesses boost production, more people would be employed and the economic cycle improve.

SternProphet:


I call this smart by MPC members not beer parlour children of used clothes sellers.

The economy needs investible funds, INCREASE your interest rates to suck in dollars and pounds and yuan. Increasing interest rates also REDUCES inflation.
When you are properly capitalized from outside funding, start reducing lending rates so that local businesses can grow to meet up

Though I'm not an Economist, I think you've a good view. I won't take it wholly until I understand the subject clearly.

For the record, I'M NOT A WAILER!

I'm not understanding

14% in the news......24% at the banks.

Shithole republic.

The common average Nigerians can not borrow money from bank for their small scale business. It will not be well with CBN

ibkgab001:
Why not 4%


Now I know why Muslims want sharia law ..
now I know why Nigeria is not progressing ...
Now I know many company will collapse ...
Now I know many graduates can't be investor



A reasonable Government will do all possible means to boost the economy of its nation .. but here in my Country things are getting worse / Government.....

I believe one day it shall be well with Nigeria

This shows you how irredeemably greedy the entire system is..which country in this world can make progress with such an interest rate??

DuBLINGreenb:
The joke is on you OP Most nairalanders do not understand what that means or implies

even op na copy nd paste blogger. He no understand too

CBN retains Benchmark at interest rate of 14%....Which also enabled nairalanders to increase LIKES at interest rate of 100%...on my way to NEVERLAND.

Rubberstamp and zombie MPC members. Why the unanimity in voting?

In developed economies, some members would stand on the fence, others may say no.

A crawling economy that needs a boost and rate is this high. tThe people no nothing about central bankung. They're products of commercial banking.

They're making business for their colleagues in banks, to simply invest idlw funds in gilt-edged securities, with little for the real sector

14pct is extremely is sweet for any investor. Why should I loan money out when I easily logde cash with CBN and get my 14pct without lifting a pin

Ok

DuBLINGreenb:
The joke is on you OP Most nairalanders do not understand what that means or implies

That's just Economics and monetary intelligence!

Victorakats:
Horrible for businesses

How?

ibkgab001:
Why not 4%


Now I know why Muslims want sharia law ..
now I know why Nigeria is not progressing ...
Now I know many company will collapse ...
Now I know many graduates can't be investor



A reasonable Government will do all possible means to boost the economy of its nation .. but here in my Country things are getting worse / Government.....

I believe one day it shall be well with Nigeria

Yeah, definitely not in this generation.

givan:
I'd call this stupid! The economy is down. Reduce your lending rate to enable business get access to capital and boost production.

If businesses boost production, more people would be employed and the economic cycle would grow.

Clueless cow government.

What then happens to inflation and forex rates

givan:
I'd call this stupid! The economy is down. Reduce your lending rate to enable business get access to capital and boost production.

If businesses boost production, more people would be employed and the economic cycle would grow.

Clueless cow government.

Consider the possibilities of hyper inflation and it's negative impact on the economy and the value of our currency!

Solowande:
The common average Nigerians can not borrow money from bank for their small scale business. It will not be well with CBN

Easy Bro!
It will be well with them.

Nigga44:
14% in the news......24% at the banks.
Shithole republic.

Its even 30% in fidelity bank

givan:
I'd call this stupid! The economy is down. Reduce your lending rate to enable business get access to capital and boost production.

If businesses boost production, more people would be employed and the economic cycle would grow.

Clueless cow government.

For your record, two or more macroeconomic objectives cannot be achieved simultaneously in the short run. You did mention that MPR should be reduced in order to accelerate investment via production. It might interest you to know that it doesn't work as easy as you think. In addition, our economy is consumption dependent and not the other way round - production. Hence, reduced MPR will rather stimulate consumption rather than production. And it will also triggers increase in consumer price index (CPI) which will impact negatively on the welfare of Nigerians.

In addition, it will adversely affect the government's ability to raise fund through FGN Treasury bills. The effect of this can be very disheartening considering that there are several investors who are waiting to lay claims to their initial 91, 182 and 364 days investments or purchases as economists rather prefer to call it.

Permit me to say that members of MPC are professionals in their various fields of endeavour. For instance, Prof. Festus Adeola Adenikinju of the department of Economics, Ui and Centre for Petroleum Economics, Energy and Law (CPEEL), Ui is a man of many parts. He has served in several positions of authority.

walexy100:
Rubberstamp and zombie MPC members. Why the unanimity in voting?

In developed economies, some members would stand on the fence, others may say no.

A crawling economy that needs a boost and rate is this high. tThe people no nothing about central bankung. They're products of commercial banking.

They're making business for their colleagues in banks, to simply invest idlw funds in gilt-edged securities, with little for the real sector

14pct is extremely is sweet for any investor. Why should I loan money out when I easily logde cash with CBN and get my 14pct without lifting a pin

Everything about Nigeria is rent seeking.