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Nigeria retains lending rate at 11.5 percent amid high inflation

Nigeria map
Nigeria map

Nigeria’s central bank on Tuesday announced a decision to retain the monetary policy rate at 11.5 percent amid high inflation, citing the recent exit from recession as a major reason.

The Monetary Policy Committee of the Central Bank of Nigeria headed by Godwin Emefiele, the bank’s governor, said after a two-day meeting that the decision was taken to ensure price stability and growth.

The central bank also retained the liquidity ratio at 30 percent, and the cash reserve ratio at 27.5 percent.

Emefiele said any decision to “tighten” may reverse “the fragile recovery and return the country back to recession.”

With the recent exit of the country from recession, Emefiele said there was the need to focus on a consolidation of the recovery process which includes taking the actions that would create employment and stimulate economic growth.

Nigeria’s inflation rate stood at 16.47 percent in January but rose to 17.33 percent last month, the highest inflation rate in three years.