The Central Bank of Nigeria led Monetary Policy Committee on Tuesday left interest rates unchanged as widely anticipated.

The CBN Governor, Mr Godwin Emefiele, who announced the decision of the committee at the apex bank's headquarters in Abuja said the committee left Monetary Policy Rate unchanged at 14 per cent, while the Cash Reserves Ratio was left at 22.5 per cent.

Also, Liquidity Ratio was retained at 30 per cent; Asymmetric corridor at +200 and -500 basis points around the MPR.

The governor said the committee strongly considered tightening monetary policy to further curtail the threat of a rise in inflation and sustain capital inflow in the face of sustained monetary policy normalization in the US.

According to him, despite the deceleration in headline inflation, the 11.23 per cent inflation rate recorded in June remains above the apex bank's 6-9 per cent target range. This, he supported with the possible implementation of approved 2018 budget, N9.12 trillion, pre-election spending and injection from fiscal authorities, which are expected to provide the economy with additional liquidity that could pressure consumer prices even more. Therefore, the committee believed higher interest rates would rein-in inflationary pressure towards projected single digit, build investors' confidence and stabilize the foreign exchange market.

On the contrary, the committee was of the view that while raising interest rates could curtail inflation rate at this time, it would weaken consumption, reduce new investments, and trigger the re-pricing of financial assets by deposit money banks, thus limiting credit funding to the real sector.

However, in response to various calls for lower interest rate, the governor said lower monetary policy rate would aid consumption but hurt capital inflows, disrupt foreign exchange, and escalate inflation rate as liquidity to the economy is expected to increase once the federal government commence implementation of the 2018 budget.

Therefore, the seven of the ten-member committee voted to maintain current MPR, while two voted for 50 basis points increase, the remaining member voted for 25 basis points raise. Suggesting that "the committee is likely to hike rate in the fourth quarter depending on the implementation of the 2018 budget, the level of pre-election spending, and the state of global economy, especially the U.S monetary policy, Brexit negotiation and global trade tensions," said analysts at Investors King Ltd.

http://investorsking.com/cbn-leaves-interest-rate-unchanged-at-14/

GOOD DEVELOPMENT

Kudos to CBN.

E concern them... Dollar to Naira never change so

Good one

Loan on point, I want to buy Buharians

post=69680839:
GOOD DEVELOPMENT

Na so, what did you understand from this news that is good development. Do you just want us to know you didn't die of high blood pressure following yesterday's sad news for APC?

Okay

CBN interest rate that nigeria banks only give to themselves. Enter any bank to inquire about loan, if them tell you requirement u go shock. Some will even go as far as telling u to provide landed properties document for them and the landed property must be in a good location in either Lagos, Abuja or PH and the interest rate will be 23%+. I swear loan not for the poor in Nigeria ��. This country too cast.

I thought the circled used to be (0) on First page?

Skeptical

All I know is that there is hunger in the land.

Awon lomo

pawesome:
E concern them... Dollar to Naira never change so

Ignorance! This news isnt for you, It's for the money market investors.

FOOLS WILL SAY GOOD DEVELOPMENT INTERESTS RATE IN EUROPE IS .5% BLIND FOOL'S

lonelydora:
I thought the circled used to be (0) on First page?

in principle, 0 is wrong when counting pages. Do you start with page zero when numbering? Think! I guess they have realized their mistake and corrected it.

stanbic IBTC bank is charging me 29% please who do I report to?

aaronson:
Ignorance! This news isnt for you, It's for the money market investors.

izit your ignorance?... chor chor chor chor chor.....its not everything you must reply.. And that is called minding your business

Am I the only one who read everything but understood nothing?

economia:
stanbic IBTC bank is charging me 29% please who do I report to?

29 percent is high but banks can't give you 14 per cent, they have to add operating cost and service charge. Abi if you default, who go convert security to cash?

dingbang:
in principle, 0 is wrong when counting pages. Do you start with page zero when numbering? Think! I guess they have realized their mistake and corrected it.

Seun is working. Seun for President

Btw, How are you dealing with the #BankWars? You know your bank is my number one bank. Efficient and Effective.

lonelydora:


Seun is working. Seun for President

Btw, How are you dealing with the #BankWars? You know your bank is my number one bank. Efficient and Effective.

well, my modus operandi is on Nairaland and not on twitter so that's their business. If it were on nairaland, I tell you , that thread would have been deleted even before people start to see it. So many threads against first bank have been created on nairaland and i made sure they didn't see the light of day.

That's how I work, I can't be working for a company and someone comes from nowhere to bash it. Mbanu. I will contribute my own quota in protecting the interest of the whichever establishment I find myself in as well as the goodwill of its brand

dingbang:
well, my modus operandi is on Nairaland and not on twitter so that's their business. If it were on nairaland, I tell you , that thread would have been deleted even before people start to see it. So many threads against first bank have been created on nairaland and i made sure they didn't see the light of day.

That's how I work, I can't be working for a company and someone comes from nowhere to bash it. Mbanu. I will contribute my own quota in protecting the interest of the whichever establishment I find myself in as well as the goodwill of its brand

Wow. Diligent worker. May God reward all your efforts in Jesus Name. AMEN

lonelydora:


Wow. Diligent worker. May God reward all your efforts in Jesus Name. AMEN

amen brother. thanks

dingbang:
well, my modus operandi is on Nairaland and not on twitter so that's their business. If it were on nairaland, I tell you , that thread would have been deleted even before people start to see it. So many threads against first bank have been created on nairaland and i made sure they didn't see the light of day.

That's how I work, I can't be working for a company and someone comes from nowhere to bash it. Mbanu. I will contribute my own quota in protecting the interest of the whichever establishment I find myself in as well as the goodwill of its brand

Is that First Bank's policy concerning customers grievances? Bury it?

RoyalPriesthuud:
Is that First Bank's policy concerning customers grievances? Bury it?

I have a thread for customers grievances which I solve . please check my signature.

dingbang:
I have a thread for customers grievances which I solve . please check my signature.

All good.