CBN keeps benchmark interest rate at 11.5%, says it will help economic growth

The monetary policy committee of the Central Bank of Nigeria (CBN) announced its decision to keep the key monetary rate (TPM), which measures the interest rate, at 11.5%.

Speaking to reporters on Friday after the committee’s two-day meeting at CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said the committee applauded the fifth drop in inflation in August. 2021.

According to Emefiele, the committee unanimously voted to keep the key rate at 11.5%, with an asymmetric corridor of +100 and -700 basis points around the MPR.

The CBN MPC noted that maintaining the position would allow the current recovery in output and lower inflation to continue.

He urged the tax authority not to relax its infrastructure initiatives, including diaspora bonds to increase investment in critical infrastructure.

On Wednesday, the National Bureau of Statistics (NBS) said the Consumer Price Index (CPI), which measures the rate of change in the prices of goods and services, fell for the fifth consecutive time to 17.01% in August against 17.38 recorded in July.

This rate is 0.37% lower than the 17.38% recorded last month.

Since March 2021, Nigeria’s inflation rate has been on a downward trend, Central Bank of Nigeria (CBN) it could drop to 13% this year and a single-digit rate by 2022.

Regarding exchange rates, Emefiele said the committee also applauded the banks for responding to exchange requests and that all requests necessarily had to be conducted at the Importer and Exporter (I&E) counter to ensure stability.

He said operators must adhere to stipulated guidelines as the umbrella bank strives to eliminate fx resellers in the countryside.

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