Nigeria’s MPC holds rates as steady decline in inflation fails to impress members for a cut

Nigeria’s monetary policy committee (MPC) Tuesday voted to retain monetary policy rate (MPR) at 14 percent as well as other benchmark rates. This is despite analysts’ expectations for expansionary policy following steady declines in inflation in the past 15 months.

business a.m. learnt one member even voted for a 50 basis point raise, which indicates the road to a rate cut is still long

The MPC took time to call on the Federal Government to take advantage of the current rise in oil prices to build fiscal buffers.

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) indicated that the apex bank would need to sanction banks who choose to hold government securities in an effort to boost asset creation and lending by the commercial banks.

Details later…