BREAKING! CBN’s MPC keeps policy rate at 11.50%, to avert recession, curtail inflationary pressure

By Charles Abuede

• Hopes Nigeria exits recession by end of Q4 2020 while inflation will head southwards Q1 2021

The 276th meeting of the CBN’s Monetary Policy Committee (MPC) held on Tuesday in Abuja in the light of lingering uncertainties associated with the COVID-19 pandemic, economic recession, social unrest across the country during the last month, and the continuous rise of inflationary numbers, has chosen to retain the policy rate at 11.50 per cent from its last meeting, during when it had slashed it from its previous 12.50 per cent.

Business A.M. learnt the move is to avert the ongoing recession, as well as curtail the inflationary pressure on the economy.

This was revealed by Godwin Emefiele, the CBN governor while addressing the newsmen at the CBN headquarters in Abuja on Tuesday. He further stated that the decision comes from the committee’s considerations not to tighten monetary policy as it will curtail rising inflation and also negate the desires of the deposit money banks to lend credit to the real and private sectors.

The apex bank helmsman further revealed that with the decision, the bank’s outlook for the domestic economy is that Nigeria will recover from the recession by the close of the fourth quarter of 2020, while inflation will head south by the close of the first quarter of 2021.

Meanwhile, the committee further maintained the asymmetric corridor of +100/-700 basis points around the MPR; retained the CRR at 27.5 per cent; and also retained the Liquidity Ratio at 30 per cent.

Full details coming shortly…………….