The CBN Governor, Godwin Emefiele, this the first Monetary Policy Committee meeting for the year held in Abuja on Tuesday.
According to Emefiele, the Committee also decided to leave the Cash Reserve Ratio and Liquidity Ratio unchanged at 27.5 per cent and 30 per cent respectively.
“After a careful balancing of the benefits and the downside risks of the policy options, the MPC decided to hold all parameters constant, believing that a whole stance will enable the continuous permeation of current policy measures in supporting the recorded growth recovery and further boost production and productivity which will ultimately rein in inflation in the short to medium term, ” he said.
The MPR, which has remained unchanged for months, is a powerful tool for regulating interest rates in the economy.
MPR is a key policy instrument of the CBN to regulate borrowing rates in the economy.
Lower rates tend to animate borrowing and stimulate higher economic activities while raising the rate has the opposite effect.
A report by The PUNCH cites unnamed financial analysts as being divided over the decision of the apex bank.
According to the report, some analysts said the development meant tougher days ahead for Nigerians and companies, while others said the MPC had no choice but to leave the key rates unchanged.
