Experts kick as CBN retains 20 months old MPR at 14 per cent.

Central Bank of Nigeria’s (CBN) governor Godwin Emefiele. 

/ AFP PHOTO / PHILIP OJISUA

NSE All-Share Index drops further

As the Central Bank of Nigeria (CBN) yesterday retained the Monetary Policy Rate (MPR), the rate at which the CBN lends money to commercial banks, at 14 per cent against industry watchers expectations, some economists are forecasting a continuous contraction in the real sector of the Nigerian Economy.

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, said the MPC members unanimously voted to retain the existing MPR and other monetary indices.This means that the Cash Reserve Ratio still remains 22.5 per cent, Liquidity Ratio, 30 per cent, the Asymmetric corridor is at +200 and -500 basis points around the MPR.

“The Committee was of the view that further tightening would strengthen the impact of monetary policy on inflation with complimentary effects on capital flows and exchange rate stability.“Nevertheless, it could potentially dampen the positive outlook for growth and financial stability.

By Mathias Okwe.

Full story at The Nigerian Guardian.