For the third consecutive time, the apex Central Bank of Nigeria (CBN) has retained lending rates at 12%, citing challenging economic realities at both local and global levels.
According to a statement from the bank obtained Wednesday by PANA here, its Monetary Policy Committee (MPC) took the decision after a two-day meeting in the capital city of Abuja Tuesday.
Before arriving at the decision, the MPC – CBN’s highest policy making body – examined three options: An increase in rates in response to the uptick in headline and food inflation; A reduction in rates in view of declining core inflation and GDP growth and retaining current monetary policy stance in view of conflicting price signals and global uncertainties.
“The Committee…decided by a unanimous vote to maintain the current policy stance i.e. to retain the MPR at 12 per cent with a corridor of +/- 200 basis points around the midpoint; and retain the CRR at 12.0 per cent and the Liquidity Ratio at 30 per cent,” the statement said.
The Committee reviewed the domestic and global economic conditions and financial environment as well as the challenges that faced the Nigerian economy during the first 10 months of fiscal 2012, with the view to reassessing monetary policy options in the near-to-medium term.
The Committee observed that the developments in the domestic economy in the past three months highlight some new pressure points to macroeconomic stability