Central Bank of Nigeria’s Monetary Policy Committee has voted to increase the benchmark interest rate by 50 basis points to 18. percent.
This was disclosed by the CBN Governor, Godwin Emefiele, on Tuesday.
He read out the communiqué of the second MPC meeting and entertained questions thereafter.
He said the committee also pegged the liquidity ratio at thirty percent.
The tightening of the rate according to the apex bank governor was expected to curtail inflation currently put at twenty-one percent.
On naira redesign, Emefiele explained that the bank aligned itself with the Supreme Court’s judgment as currency in circulation (redesigned naira) was about one trillion naira.
He said that the bank would continue to pump more currency into the system but with caution.
▪Performance of the banking system
The central bank boss expressed confidence in the nation’s commercial banks, stating that they had remained resilient with capital requirement at thirteen percent, non performing loans at four point two percent and cash reserve of the banks raising to fourteen trillion naira.
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