The Monetary Policy Committee (MPC), has elected to leave the benchmark interest rate at 14 percent for a record sixth straight time.
The decision aligns with predictions from analysts that have spoken to BusinessDay, prior to the announcement today.
Two MPC members, which include Doyin Salami, had voted to cut the policy rate at the July meeting, while the other six who were present, including Godwin Emefiele, the CBN governor, wanted to hold. In November however, only one member voted for a cut.
The committee also voted to leave the liquidity ratio at 30 percent while the credit ratio rating (CRR) was held at 25 percent. The asymmetric corridor was also kept at +200 and -500 basis points.
According to Emefiele, the committee noted the Purchasing Managers index which showed continued expansion in Nigeria’s Manufacturing sector.
“Rising global political tensions were one of the factors we looked at before our decision. The MPC committee noted that the NAFEX window has recorded $18.5bn in transactions since its creation,” said Emefiele.
He also stated that Nigeria’s policy makers must not relent in their aggressive policies aimed at boosting economic growth. The MPC committee urged the national assembly to pass Nigeria’s 2018 budget quickly.